Which statement is true about option contracts when the offeree pays separate consideration to keep the offer open for a stated period?

• A. The offer remains irrevocable for the entire period, even if the offeror dies.
• B. The option becomes void if the offeror dies before acceptance.
• C. The offer can be revoked at any time by the offeror, despite the consideration.
• D. The option remains irrevocable for the period, but only if the offeree continues to perform.

Answer: (A)

When the offeree gives separate consideration to keep the offer open, an option contract is created. That option contract makes the offer irrevocable for the period stated because the offeree’s payment supports a binding promise by the offeror not to revoke the offer during that window. The crucial point is that the option is a separate contract, so the offeror’s obligation to keep it open is enforceable even if the offeror dies during the period. After the period ends, the offer can be revoked again. The other ideas don’t fit: death does not nullify the option during the defined period, and irrevocability does not depend on ongoing offeree performance or on revocation at any time outside the agreed window.