How is the option contract between Sam and the seller best described?

An option contract is a type of agreement that provides one party the right, but not the obligation, to buy or sell a property at a specified price within a predetermined timeframe. In this context, if Sam has an option contract with the seller, it is best described as voidable.

This classification arises from the fact that one party (usually the option holder, Sam in this case) has the ability to exercise or rescind the option under specific circumstances. For instance, if there are issues such as misrepresentation or a lack of capacity, Sam may choose to void the agreement. The seller, on the other hand, cannot simply cancel the contract unilaterally without cause, which distinguishes voidable agreements from void contracts, where no legal effect can ever be recognized.

The validity of the contract depends on the circumstances surrounding it which might allow the option holder the right to void it, providing a layer of protection to the party with lesser bargaining power. This is particularly important in real estate transactions, where conditions often shift, and interests may change. Thus, understanding the nuances of option contracts is critical for both buyers and sellers in real estate.