Gordon Vs. Hanson

Gordon accepted a purchase option from Hanson. An option contract is a contract to hold an offer to make a contract open for a fixed period of time. Gordon and Hanson entered a first-refusal contract that provided that if Gordon decided to sell his house to anyone, Hanson would have an option to buy it for $150,000. The right of first refusal is the right of a party to meet the terms of a proposed contract before it is executed. This type of agreement is understood that without a fixed termination date it is to remain open for a reasonable time, which two weeks is considered reasonable. Hanson's right to buy the house began at the time Gordon decided to sell his house to Jones for a higher price. Gordon violated his contract with Hanson by
not offering to sell Hanson the house and instead entering into an agreement with Jones. Therefore, Hanson will be able to exercise his purchase option and force Gordon to sell the house for $150,000.