Virginia State Real Estate Exam Practice Question
Which statement about an option contract is correct?
Correct Answer: B
Rationale: An option contract requires that its terms be clearly stated to avoid ambiguity and ensure that both parties understand their rights and obligations. This clarity is essential for enforceability and effective negotiation.
Option A is incorrect because the optionee (the buyer) does not make a promise to contract; rather, they hold the right to decide whether to enter into a contract. Option C is misleading; while consideration is necessary for an option contract, interest is not automatically applied unless specified. Option D is also wrong, as the potential buyer is the optionee, not the optionor, who is the seller granting the option.
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