Illinois Real Estate Exam Practice Question
Is an option to purchase considered to be a form of contract?
Correct Answer: B
Rationale: An option to purchase is indeed a form of contract because it necessitates consideration, which is a fundamental element for any valid contract. This means that something of value must be exchanged, making the option legally binding.
Option A is incorrect as it misinterprets the nature of the option; the essential terms are established in the option itself, not solely after exercising it.
Option C is misleading; an option can be a valid written and signed agreement, contrary to the claim.
Option D is also wrong; an option can be executed, meaning it can lead to a binding agreement when exercised, thus reinforcing its status as a contract.
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