Contracts
Option contract
A paid right to buy on set terms within a set period, with no obligation to buy
The optionee buys time, not property. The optionor is bound to sell if the option is exercised; the optionee may let it expire and lose only the option consideration. Developers use options to control land while they pursue zoning approvals.
How the exam asks about it
The standard unilateral contract, and the standard exception to the rule that an offer can be revoked before acceptance.
Related terms
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