What two elements must an option contain?

• A. A Lease Term and Security Deposit
• B. A Mortgage Terms
• C. A Definite Purchase Price and A Definite Time Period
• D. A Property Description

Answer: (C)

An option contract is built on giving someone the right to buy a property, but only if certain terms are clear. The two essential terms that must be included are a definite purchase price and a definite time period. The price fixes what will be paid if the option is exercised, and the time period establishes exactly how long that option lasts. Together, they remove ambiguity and make the option enforceable, since the buyer knows the cost and the window in which they can act.

Other elements like lease terms, security deposits, or mortgage terms aren’t what define an option contract. A property description helps identify the subject, but without a specific price and a clear expiration, the option wouldn’t define its scope or duration.