Option
/ˈɒpʃən/
Definitions
- (n.) A contractual right to buy or sell an asset at a specified price within a certain period.
The investor purchased an option to buy shares at $50 each within three months.
- (n.) A choice or alternative available within a legal agreement or decision-making process.
The parties agreed to explore the option of mediation before litigation.
Forms
- options
Related terms
Commentary
In legal drafting, clarity about exercise terms and duration is crucial to avoid disputes over the option's scope.
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.