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 § 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 (law): Introduction, Application of Option Contract in Unilateral Contracts, Assignability, See Also
Famous quotes containing the word option:
“You dont merely give over your creativity to making a filmyou give over your life! In theatre, by contrast, you live these two rather strange lives simultaneously; you have no option but to confront the mould on last nights washing-up.”
—Daniel Day Lewis (b. 1957)