MBE Rules · Contracts
Option contracts
Restatement §87
The rule
An option contract makes an offer irrevocable for a stated period. Requires (1) an offer in writing, (2) signed by the offeror, (3) reciting consideration (even nominal recital usually suffices under Restatement §87), and (4) for an exchange on fair terms within a reasonable time.
In plain English
An option contract lets someone keep an offer open for a set time, and the offer can't be taken back if certain conditions are met.
Worked example
The defendant offers to sell a car to the buyer and signs a paper saying the offer will stay open for 30 days, with a $1 payment as consideration. The buyer can accept the offer anytime in those 30 days.
Memory hook
Option Contracts: Seal the Deal. Write, Sign, Consider, and Time to lock in offers.
The trap
Students think: any written offer is irrevocable. Wrong, because it needs signature and consideration. The actual test is all elements: writing, signature, consideration, reasonable time.
How examiners test it
MBE loves: an offeror writes and signs an offer but doesn't mention consideration. Trap: assume it's irrevocable. Test: check for all elements, especially consideration, to confirm it's an option contract.
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