New Jersey Real Estate Practice Exam Practice Question
Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A will honor for a 12 month period exclusively for Buyer B. This would be an example of a
Correct Answer: A
Rationale: In this scenario, Seller A has made a promise to sell at a specified price for a designated period, creating a unilateral contract where only Seller A is obligated to perform if Buyer B decides to exercise the option.
Option B is incorrect as Buyer B has not made any promise to perform; they simply have the right to choose whether to buy.
Option C mischaracterizes the agreement; a bilateral contract requires mutual promises from both parties, which is not the case here.
Option D is also wrong; the contract is valid and enforceable, not void. Thus, the nature of the agreement aligns with a unilateral contract where only Seller A has the obligation.
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