Option Contract

Question 1

is a contract in which one leg of the consideration is a promise to keep an offer open for some period of time.

Answer 1

Option Contract

Question 2

must meet all of the other elements of contract formation.

Answer 2

Option Contract

Question 3

______________ contract is one that restricts the power to revoke (for a period of time).

Answer 3

Option Contract

Question 4

small amounts of consideration are sufficient to create an _______contract.
consideration for option contract can either be money or services

Answer 4

Option Contract

Question 5

An offeree’s __________________ may be terminated by
rejection or counter-offer by the offeree, or
lapse of time, or
revocation by the offeror, or
death or incapacity of the offeror or offeree.

Answer 5

power of acceptance

Question 6

the ______________ under an option contract is not terminated by rejection or counter-offer, by revocation, or by death or incapacity of the offeror, unless the requirements are met for the discharge of a contractual duty.

Answer 6

power of acceptance

Question 7

The word “revoke” is not essential to a revocation.
Any clear manifestation of unwillingness to enter into the proposed bargain is sufficient.
Thus a statement that property offered for sale has been otherwise disposed of is a revocation.
But equivocal language may not be sufficient.

Answer 7

Power to Revoke