medium · National Real Estate Exam contracts
An option contract is often described as a 'unilateral contract.'
Why is this classification correct?
- The contract is only valid for one specific, clearly defined unit of time, like a month.
- The option money must be paid to the optionor as one single lump-sum installment, never parts.
- Only the optionor (seller) is legally bound to perform if the optionee chooses to exercise the right.
- Both parties are legally bound to complete the sale transaction once the option agreement is duly signed.
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