In an option contract: a. the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time b. the offeree is free to accept or reject the offer c. all of the above d. a separate contract is created for the limited purpose of keeping the offer open

Question

Jerimiah Hunt

Business

8 November, 00:12

In an option contract: a. the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time b. the offeree is free to accept or reject the offer c. all of the above d. a separate contract is created for the limited purpose of keeping the offer open

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Zayden Joyce · Answer 1

d. a separate contract is created for the limited purpose of keeping the offer open

Explanation:

The contract defines that it is a contract between two or more persons in which the legal agreement, offers acceptance by the offeree is there and thus it is a lawful contract which is created by mutual agreement between the parties.

If the offeree offers the offeror some value in return for a commitment not to withdraw the offer for a given period of time, a contract option was established. A choice is a separate contract with the specific intention of holding the offer open.