Contracts, 12% of the examination
Option
A unilateral contract giving the holder the right, but not the obligation, to buy on stated terms during a stated period.
The optionor is bound and the optionee is free. An option needs valid consideration to be binding. A right of first refusal is passive by comparison: it only lets the holder match an offer the owner has decided to accept, and cannot compel a sale.
See it in a question
One question from Contracts, so the term lands in the context the exam uses it in.
Contracts ยท 12%Offers/Purchase Contracts
A seller receives an offer and returns it signed, having changed the closing date. What has the seller legally done?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.