Virginia State Real Estate Exam Practice Question
Which statement about an option contract is CORRECT?
Correct Answer: B
Rationale: An option contract requires that the terms must be explicitly stated, ensuring both parties understand their obligations. This clarity is essential for enforceability and mutual agreement.
Option A is incorrect because the optionee (the party holding the option) does not promise to contract; rather, they have the right to decide whether to enter into the contract.
Option C is misleading; consideration must be provided, but interest does not automatically apply to options.
Option D is incorrect as the potential buyer is the optionee, while the optionor is the seller granting the option.
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