An option to purchase contract is?

Study for the Alabama Real Estate Post-License Exam. Engage with flashcards and multiple-choice questions, with hints and explanations for each question. Get ready to excel on your exam!

An option to purchase contract is always unilateral because it involves only one party having the obligation to act. In this type of contract, the optionor (the seller) grants the optionee (the buyer) the exclusive right to purchase a property at a specified price within a certain timeframe. The optionee has the choice to exercise the option to purchase but is not obligated to do so, while the optionor must fulfill their obligation to sell if the option is exercised.

This characteristic differentiates it from bilateral contracts, where both parties make mutual promises to perform. In an option to purchase, the seller makes a promise to sell, but the buyer's promise to buy is contingent upon their decision to exercise the option, making the contract fundamentally unilateral.

The nature of the option also does not inherently establish any conditions that must be met for the purchase to be made, nor does it imply that the agreement can be undone simply. The focus remains solely on the unilateral right the buyer has, reinforcing that this type of agreement remains distinctly unilateral in nature.

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