Question

The Cowgers leased certain real property to Northwestern Bell for ten years. The contract granted an option to buy the property provided that the lessee gives sixty days prior notice of its intention to purchase. Northwestern Bell gave the required sixty-days notice. Northwestern Bell sued for specific performance. The Cowgers claimed that the option had not been properly exercised. Can Northwestern Bell accept the option without tendering the purchase price? Explain.

Answer 1

This kind of contract is called option contract under this most commonly used for real estate but can be used for other things as well. If the option is exercised according to its terms and conditions a binding contract is created the seller must sell and the buyer must buy for the price or consideration and on the terms stated in the contract.

Yes the Northwestern Bell are accept the option but the Cowgers are liable to pay remaining tendering purchase price because the Cowgers gave the real property to northwestern bell for ten years . In this case the Cowgers give the real property in lease and the lessee give the time for sixty days priop notive of its intention to purchase and the Northwestern will gave the required sixty days notice. As per the Northwestern want to accept the option.