An option contract, or simply option, is defined as "a promise which meets the requirements for the formation of a contract and limits the promisor's power to revoke an offer." Restatement (Second) of Contracts ยง 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. 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.
Read more about Option Contract: Introduction, Application of Option Contract in Unilateral Contracts, Assignability
Other articles related to "option contract, contract, option, contracts":
... It is a general principle of contract law that an offer can not be assigned by the recipient of the offer to another party ... However, an option contract can be sold (unless it provides otherwise), allowing the buyer of the option to step into the shoes of the original offeree and accept the offer to which the option pertains ...
... An option contract, or simply option, is defined as "a promise which meets the requirements for the formation of a contract and limits the promisor's power to ... 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 ...
... The option contract provides an important role in unilateral contracts ... In unilateral contracts, the promisor seeks acceptance by performance from the promisee ... In this scenario, the classical contract view was that a contract is not formed until the performance that the promisor seeks is completely performed ...
Famous quotes containing the words contract and/or option:
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