Practice Quiz

Texas Real Estate Exam

Category - Texas

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Jed gives Jake a written option allowing Jake to buy Jed’s house for $100,000 within eighteen months from the date of the option. Jake gives Jed $0.25 payment in exchange for the option. The option is:
  1. Void for lack of sufficient consideration
  2. Voidable for lack of consideration, but only at Jed's discretion
  3. Valid; the consideration is sufficient
  4. Unenforceable because the option right extends beyond one year
Explanation
Answer: C. Jed has a valid option. Although the consideration of $0.25 is small, it is sufficient. An option may extend for a period longer than one year.
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