Question

Mary is selling her house for $100,000 and Felipe, who is expecting an inheritance soon, wants to have the option to buy it next month at that price. Felipe gives Mary a $1,000 deposit in exchange for Mary’s promise that he can buy the house next month at $100,000 if he gets his inheritance. Mary and Felipe?

Answer 1

Answer:

Mary and Felipe have an option agreement.

Step-by-step explanation:

Mary and Felipe have an agreement .They have agreement where they give purchaser the opinion that he can buy the asset at the particular date that he gave an agreed upon price.This is an option contract . A contract between buyer and seller.

So in this case Mary is selling her house . She is seller and she construct and agreement with Felipe.Felipe wants to have inheritance soon so wants to have buy it next month at that price.

Felipe is a buyer. He gives Mary $1,000 deposit in exchange for Mary's promise that he can buy the house next month at $100,000 if he gets his inheritance so it is an option contract .