Tennessee Real Estate Exam Practice Question
Regarding an option to purchase land which statement is correct?
Correct Answer: B
Rationale: An option to purchase land requires clear terms and conditions to be legally binding, making option B accurate. Without defined terms, the validity of the contract can be challenged.
Option A misidentifies roles; the optionee is the potential buyer, not the one promising to contract. Option C incorrectly states that consideration and interest automatically apply to the purchase price; this depends on the specific agreement terms. Option D reverses the roles, as the optionor is the seller granting the option, while the optionee is the potential buyer seeking to purchase the land.
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