Chapter 5 (6)

Question 1

What is an option agreement ?

Answer 1

A contract in which a party gives something of value to keep an offer open for a specific period of time

Question 2

What is the purpose of the seal?

Answer 2

A symbol, or stamp, on a contract thst indicates the intention to be legally binding. This takes the place of consideration, which is the “price” or whatever the 2 parties might exchange, in the name of the contract

Question 3

What is a condition?

Answer 3

An important term in a contract, that if not met, can result in the non-breaching party being absolved from all contract obligations

Question 4

What is a warranty?

Answer 4

A minor term in a contract that, if broken, requires the non-breaching party to continue to fulfill its obligations