Practice question
A standalone option gives thirty days to buy a specified item for a fixed price and is supported by a separate option fee. The offeror says the fee is irrelevant because the holder has not yet accepted the sale. Which answer is correct?
- The distinct fee can support the binding option during the agreed period
- Only full payment of the future purchase price can support an option
- Every option is necessarily revocable despite consideration
- The fee automatically transfers ownership of all the seller's goods
- The holder must exercise immediately or lose every right
Legal references
- Civil Code Articles 1324 and 1479: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- PNOC v. Keppel Philippines Holdings, GR 202050, July 25, 2016, main decision: https://lawphil.net/judjuris/juri2016/jul2016/gr_202050_2016.html
- F.F. Cruz & Company v. NMC Container Lines, GR 270449, August 11, 2025, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70224
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