Comprehensive and Detailed Explanation (150–250 words):
An option contract is a unilateral contract in which the seller (optionor) grants the buyer (optionee) the exclusive right to purchase property at a specified price within a set time. For the option to be valid, the terms and conditions of the future sale must be clearly stated (price, property description, and time period). Consideration (option money) must also be given.
A: Incorrect because only the optionor (seller) is obligated; the optionee (buyer) is not required to purchase.
C: Option consideration is not automatically applied unless the contract specifically states it.
D: Reverses the roles; the seller is the optionor, the buyer is the optionee.
Thus, the correct answer is B.
[Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Contracts; Options in Real Estate., ]
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