Practice Quiz

Florida Real Estate Exam

Category - Florida

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Jed gives David a written option allowing David to buy Jed’s house for $100,000 within eighteen months from the date of the option. David 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's option is valid. 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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