An option contract is a type of contract that protects an offeree from an offeror's ability to revoke the contract. An option contract is a type of contract that protects an offeree from an offeror's ability to revoke the contract.
Option Contract. A promise to keep an offer open that is paid for. With an option contact, the offeror is not permitted to revoke the offer because with the payment, he is bargaining away his right to revoke the offer. wex: COMMERCE. business law An option is a type of contract that is used in the stock and commodity markets, in the leasing and sale of real estate, and in other areas where one party wants to acquire the legal right to buy something from or sell something to another party within a fixed period of time. In the case of a commodity option, the right to purchase or sell pertains to an underlying physical commodity, such as a specific quantity of silver, or to a commodity futures contract. The period during which an option can be exercised is specified in the contract. The difference between a contract and an option contract is in the options that a buyer has a right to exercise in the contract, which makes the contract a bit more flexible. An option contract allows a buyer and seller to enter into a contract for the sale of goods or real property but the sale is contingent upon certain terms like a timeframe or an action. Option contracts are generally in writing. Jupiterimages/Photos.com/Getty Images. An option contract is an agreement based on consideration to keep an offer open for a certain period of time. A firm offer is an offer that cannot be revoked for a certain period of time based on the terms of the offer. Contracts to buy and sell come in all kinds of arrangements. One of the lesser-known varieties of contracts is known as an option contract.. In a typical option contract, the seller agrees to keep an offer open for a certain amount of time. A potential buyer has to give the seller some payment in exchange. In other words, in an option contract, the seller is agreeing to keep the option open for the buyer. An option is a type of contract that is used in the stock and commodity markets, in the leasing and sale of real estate, and in other areas where one party wants to acquire the legal right to buy something from or sell something to another party within a fixed period of time. Options have a role in business outside the stock and commodity markets. In the law of contract, the option is a continuing offer to purchase or lease property. The offer is irrevocable for the stated period of time. Like most other contracts, the option contract is not terminated by the sub-sequent death or insanity of either party. Options usually assume one of two forms In the law of contract, the option is a continuing offer to purchase or lease property. The offer is irrevocable for the stated period of time. Like most other contracts, the option contract is not terminated by the sub-sequent death or insanity of either party. Options usually assume one of two forms. In the case of a commodity option, the right to purchase or sell pertains to an underlying physical commodity, such as a specific quantity of silver, or to a commodity futures contract. The period during which an option can be exercised is specified in the contract. Restatement (Second) of Contracts § 25 (1981). An option contract is a type of contract that protects an offeree from an offeror's ability to revoke the contract. Consideration for the option contract is still required as it is still a form of contract, cf. Typically, an offeree can provide consideration for the option contract by paying money for the contract or by providing value in some other form such as by rendering other performance or forbearance. See consideration for more information.
https://www.law.cornell.edu/wex/option_contract http://legal-dictionary.thefreedictionary.com/Option+Contracts http://study.com/academy/lesson/what-is-an-option-contract-example-definition.html http://smallbusiness.chron.com/legal-difference-between-option-contract-firm-offer-71577.html http://smallbusiness.findlaw.com/business-contracts-forms/what-is-an-option-contract.html/ http://legal-dictionary.thefreedictionary.com/Option http://legal-dictionary.thefreedictionary.com/Option+Contracts https://en.wikipedia.org/wiki/Option_contract
what is an option contract law