BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a promissory estoppel
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an option contract
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a firm offer
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none of these
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Detailed explanation-1: -Option Contract: A contract made to keep an offer open for a specified period so that the offeror cannot revoke the offer during that period. The promise to keep the offer open is supported by consideration.
Detailed explanation-2: -Key Takeaways. An options contract is an agreement between two parties to facilitate a potential transaction involving an asset at a preset price and date. Call options can be purchased as a leveraged bet on the appreciation of an asset, while put options are purchased to profit from price declines.
Detailed explanation-3: -If an option is not supported by consideration, it is considered an offer and not a contract. Consideration is generally defined as something of value. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do.
Detailed explanation-4: -It is a contract by which the owner of the property agrees with another person that he shall have the right to buy his property at a fixed price within a certain time. It is binding upon the promissor if the promise is supported by a consideration distinct from the price.