Question

A sent B a letter stating "You have a 30-day option in which to purchase my car for $2,000." Twenty-five days later, B tendered$2,000 to A and informed him that he exercised the option. A claimed that he could not exercise the option because the option was not binding as A had not received anything for it. Was A correct? 5. The owner of a business made an offer to sell an interest in the business for a specified price. The buyer wrote back agreeing to the terms of the offer and stating that payment would be made in 30 days after the transaction was completed. Was the owner bound by a contract with the buyer?

Answer 1

A gave the option to B of purchasing his car. Once is option is given, the option holder keeps the righ to exercise it, and he can exericse within time and terms, and B exercised the option by tender on car.

Whether the A recieved anything or not doesnot matter, because the option is already given, and it is not neccessary that option seller receives some compensation, and option holder has the right, the B is the option holder here.

Hence, A is correct.