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 witnessed by an attorney

4. On file at the local courthouse

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

An option contract is an agreement between two parties where one party has the right or option to buy or sell a specific asset at a set price within a certain time period. The statute of frauds is a law that requires certain types of contracts, including option contracts, to be in writing in order to be enforceable in court. Therefore, options contracts must be in writing and signed by the party offering the option, also known as the optionor. Option contracts do not require witnesses or to be filed at a courthouse, so options C and D are incorrect. Option A is incorrect as it refers to the party receiving the option, or the optionee, rather than the party offering it.