Option Clause
/ˈɒpʃən klɔːz/
Definitions
- (n.) A contract provision granting one party the right but not the obligation to take a specified action under defined terms.
The option clause allowed the tenant to renew the lease for an additional five years.
- (n.) A clause in a contract that grants an option to purchase or sell an interest, typically real property or shares, within a prescribed period.
The buyer exercised the option clause to purchase the property before the expiration date.
Forms
- option clause
- option clauses
Related terms
See also
Commentary
Option clauses must clearly define the scope, terms, and duration of the option to avoid enforceability issues.
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.