A contract has been created obliging the sellers to convey title to their land if the buyers pay $22,000 by December 31st. What type of contract is this?

The scenario described outlines a situation where sellers are obligated to convey title to their land in exchange for a specific payment by a certain deadline. This situation aligns with the characteristics of an option contract.

An option contract is a type of agreement that gives a buyer the right, but not the obligation, to purchase a property at a predetermined price within a certain timeframe. In this case, the buyers have the option to pay $22,000 by December 31st, which would then obligate the sellers to convey the title. If the buyers decide not to proceed with the purchase by that date, they are not bound to follow through with the transaction, characteristic of option contracts.

In contrast, a lease agreement involves renting property rather than buying it, while a purchase agreement typically requires both parties to fulfill obligations at closing, meaning it does not provide an option or conditional aspect. A contingency contract involves conditions that must be met for the contract to become binding, like a financing condition, but the specifics mentioned in the scenario do not indicate any such conditions. Thus, the correct identification of the contract type is indeed an option contract, as it reflects the rights and obligations inherent in the situation presented.