medium · National Real Estate Exam
An option contract is often described as a 'unilateral contract.'
Why is this classification correct?
- The contract is only valid for one specific unit of time, such as one month.
- The option money must be paid in one single installment to be valid.
- Only the optionor (seller) is legally bound to perform if the optionee chooses to exercise the right.
- Both parties are bound to complete the transaction once the option is signed.
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