Which statement about an option contract is CORRECT?

This statement is incorrect because the optionee does not promise to contract; rather, they have the right to decide whether to enter into a contract within the specified option period. The optionor is the party who grants this right, while the optionee has the choice but is not obligated to act.

This choice is misleading as it suggests that interest is automatically applied to the consideration in an option contract. In reality, consideration is the benefit received by the optionor for granting the right, and any interest on that consideration must be explicitly agreed upon by the parties and is not inherently part of the contract structure.

This statement is incorrect because the potential buyer is referred to as the optionee, not the optionor. The optionor is the party that grants the option, while the optionee is the one who has the right to purchase or lease the property at a later date, making this label incorrect.