Option Value
/ˈɒpʃən ˈvæljuː/
Definitions
- (n.) The monetary worth assigned to a contractual or statutory option, reflecting the right but not the obligation to act in a specified way, often in contracts or property law.
The option value of the lease gave the tenant the right to renew at a predetermined rate.
- (n.) In legal-economic contexts, the calculated present value of future rights or decisions under uncertainty, influencing judicial or administrative choices.
The court considered the option value when deciding whether to delay enforcement pending appeal.
Forms
- option value
- option values
Related terms
See also
Commentary
‘Option value’ often appears in contract and property law contexts involving rights dependent on future choices, emphasizing the importance of the right without obligation. Drafting should clarify the scope and enforceability of such options.
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.