Contractual Option
/ˌkɒntrækʧuəl ˈɒpʃən/
Definitions
- (n.) A provision in a contract giving one party the right, but not the obligation, to perform a particular act or make a decision within a specified period.
The lease included a contractual option to renew for an additional five years.
Forms
- contractual option
- contractual options
Related terms
See also
Commentary
Draft contracts specifying a contractual option should clearly define the scope, timing, and conditions to avoid disputes over enforceability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.