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David Brodsky Case

Decent Essays

1. What is an option contract?
An option contract allows the option holder the right to purchase something within in a certain time period for a particular price from the seller.
2. What is an “escrow?”
The escrow is an account managed by a trusted third party, it can be used to handle money, property, or a deed; until such time the payment comes due.
3. How did the escrow work in this case?
The bank would keep Brodsky’s check for 60 days without cashing it, until he decided if he wanted the property or not. If he wanted the property, the money would go to Culbertson but if he chose not to buy he would get his money back.
4. Brodsky gave a $5,000 check to the bank. Why wasn’t that consideration?
Brodsky didn’t suffer financial damage due

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