True or False: An option agreement must clearly state all terms and conditions of the sale.

An option agreement must indeed clearly state all terms and conditions of the sale for it to be legally binding and enforceable. These terms typically include the purchase price, the duration of the option, and any conditions that must be satisfied for the sale to occur. This clarity helps prevent misunderstandings between the parties involved and ensures that both sides are fully aware of their rights and obligations under the agreement.

When drafting an option agreement, specificity is crucial as it allows for a straightforward execution of the contract. Without clear terms, the option could become ambiguous, potentially leading to disputes and complicating the process if either party decides to enforce the agreement.

While certain aspects of contracts may vary depending on the type of property or contingencies involved, the foundational requirement for clarity in outlining all significant terms applies universally across all types of option agreements—not just for residential properties or specific situations. This comprehensiveness is essential to uphold the contract's validity in any legal context.