Save enough money for a down payment on loan

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Reference no: EM131366944

Juan thinks he would like to purchase Tara's house, but doesn't know whether he will be able to save enough money for a down payment on a loan. Juan agrees to give Tara $5,000 for the option to purchase her house for $150,000 sometime within the next five years. Juan and Tara reduce their agreement to writing, sign it, and Juan gives Tara $5,000. Two years later, Juan wins the lottery and now is financially able to purchase Tara's house. However, that same day, Juan receives a letter from Tara revoking her offer to sell for $50,000. Which of the following is true?

A. Tara's revocation isn't effective

C. Tara's revocation is effective as long as she refunds the $5,000.

D. Juan can't complain because he failed to accept Tara's offer before it was revoked.

Reference no: EM131366944

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