Asked by Marina Castelluzzo on May 28, 2024
Verified
Under the general law of contracts,an option contract holds an offer open for an agreed period of time,regardless of whether there is sufficient legal consideration.
Option Contract
A contract granting the option holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time period.
Legal Consideration
Something of value that is promised in exchange for performing an act or refraining from acting, forming a necessary element of a valid contract.
- Comprehend the role of consideration in contract formation and the exceptions to it.
Verified Answer
AE
aning edward stephenMay 30, 2024
Final Answer :
False
Explanation :
An option contract requires consideration to be legally binding, which means something of value must be exchanged to keep the offer open for the agreed period of time.
Learning Objectives
- Comprehend the role of consideration in contract formation and the exceptions to it.
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