Which contract type allows the option of a refund upon cancellation?

The option that allows for a refund upon cancellation is a revocable contract. This type of contract provides the purchaser with the right to cancel the agreement and receive a refund of the money paid, within certain stipulated conditions. This feature is particularly important for consumers, as it offers flexibility and protection in the event that their circumstances change or if they decide to pursue different funeral arrangements.

In contrast, guaranteed contracts generally promise specific services or products at a pre-set price, ensuring that the consumer's financial obligation is met even if costs rise in the future. However, they typically do not allow for a refund once the contract is executed.

Non-guaranteed contracts do not lock in prices for services or products and can lead to fluctuations in costs based on market conditions, but they also generally do not provide the option for refunds.

Irrevocable contracts are designed to be permanent and cannot be canceled or modified once established, which means that the purchaser would not be entitled to a refund if they choose to cancel.

Thus, a revocable contract stands out as the one that directly allows a cancellation option and the potential for a refund, making it the correct choice in this context.