Option Contract
A unilateral contract in which the optionor must sell at a set price if the optionee exercises, while the optionee is not obligated to buy.
Quick flashcard
What does Option Contract mean on the Texas real estate exam?
Answer: A unilateral contract in which the optionor must sell at a set price if the optionee exercises, while the optionee is not obligated to buy.
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Option Contract definition
An option contract gives the optionee the right, but not the obligation, to buy a property at a set price within a set time. The optionee pays consideration for this right. The optionor must sell if the optionee exercises the option.
It is a unilateral contract, because only the optionor is bound to perform if the option is exercised.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Contracts & Agency (16 of 80 National)
From definition to recall
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