Evaluate the following statements: A: If the illegal terms of a contract could be separated from the valid ones, the latter may still be enforced. B: If an option money is given, t... Evaluate the following statements: A: If the illegal terms of a contract could be separated from the valid ones, the latter may still be enforced. B: If an option money is given, the buyer is already obliged to buy the thing being sold.
Understand the Problem
The question presents two statements related to contract law. Statement A concerns the severability of illegal terms in a contract, and whether the valid terms can still be enforced. Statement B deals with option money and whether it creates an obligation for the buyer to purchase the item being sold.
Answer
A: True, B: False
Statement A is generally true; valid parts of a contract can be enforced if separable from illegal terms. Statement B is false; option money doesn't obligate the buyer to purchase.
Answer for screen readers
Statement A is generally true; valid parts of a contract can be enforced if separable from illegal terms. Statement B is false; option money doesn't obligate the buyer to purchase.
More Information
The enforceability of a contract with both legal and illegal terms depends on the jurisdiction and the severability of the terms. Option money provides the buyer with the right, but not the obligation, to buy.
Tips
A common mistake is assuming that any money exchanged automatically creates an obligation to buy. Option money only secures the right to buy within a specified period.
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