Florida Real Estate Practice Exam

To comply with the statute of frauds, an option contract must be ______.

1. In writing and signed by the optionee

2. In writing and signed by the optionor

3. In writing and signed by both the optionee and optionor

4. On file at the local courthouse

The correct answer is: In writing and signed by the optionor

An option contract is a type of legal agreement where one party (the optionor) gives the other party (the optionee) the right to buy or sell an asset at a predetermined price within a specified period of time. The statute of frauds is a legal principle that requires certain contracts to be in writing in order to be enforceable. In the case of an option contract, the statute of frauds requires that the contract be in writing and signed by the optionor, not the optionee. This is because the optionor is the one granting the option, and therefore their signature is necessary to validate the agreement. Choice A is incorrect because it only requires the signature of the optionee, which is not sufficient to comply with the statute of frauds. Choice C is incorrect because although it includes both signatures, it does not specify which one is necessary for compliance. Choice D is incorrect because