Option Contract
/ˈɒpʃən ˈkɒntrækt/
Definitions
- (n.) A contract granting a party the right, but not the obligation, to buy or sell an asset at a specified price within a specified period.
The parties entered into an option contract giving the buyer the right to purchase the property within six months.
- (n.) A contract in real estate or commercial law that allows a potential buyer a fixed time to decide whether to complete a transaction.
The option contract on the office building gave the lessee exclusive purchasing rights for 90 days.
Forms
- option contracts
Related terms
See also
Commentary
Option contracts uniquely combine contractual obligation with a conditional right, requiring clear terms on price and duration to avoid ambiguity.
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.