12. A contract that gives a purchaser the right to buy a property at a fixed price within a stated period of time, without obligating the purchaser to do so, is known as
Answer: D
An option contract.
An option contract provides a purchaser the right to buy a property at a fixed price within a specified timeframe without an obligation to complete the purchase. This feature distinguishes it from other types of contracts related to property transactions.
A) a sales contract.
A sales contract is a binding agreement where both parties are obligated to perform their duties, typically involving the transfer of ownership of property. In contrast, an option contract does not require the purchaser to buy the property, making this option incorrect.
B) a contract of sale.
A contract of sale is similar to a sales contract, in that it obligates both the buyer and seller to complete the transaction. Since an option contract allows the buyer the choice to purchase without obligation, this option does not meet the criteria described in the question.
C) an agreement of sale.
An agreement of sale typically implies a commitment by both parties to execute the sale, similar to a sales contract. Since the key feature of an option contract is the lack of obligation for the purchaser, this option is not accurate in describing the scenario.
D) an option contract.
An option contract specifically grants the right to purchase a property at a predetermined price within a specific timeframe, without requiring the purchaser to go through with the transaction. This definition aligns perfectly with the question's description, making it the correct choice.
Conclusion
The correct answer, an option contract, accurately reflects the nature of the agreement as one that allows for a purchase decision without obligation. All other options entail binding commitments that do not match the flexibility offered by an option contract. Thus, only D clearly fits the definition provided in the question.