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LSDefine
Simple English definitions for legal terms
option
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A quick definition of option:
An option is an agreement that gives someone the right to buy something or do something in the future, but they don't have to if they don't want to. It's like having a special ticket that lets you buy something at a certain price or time, but you don't have to use it if you don't want to. Options can be used for things like buying property, stocks, or other things.
A more thorough explanation:
An option is a type of agreement that gives someone the right to buy or sell something in the future, according to specific terms that have been agreed upon. This can include property, stocks, or other assets.
For example, if someone has an option to buy a house, they have the right to purchase the house at a specific price within a certain timeframe. However, they are not obligated to buy the house if they choose not to.
Similarly, if someone has a stock option, they have the right to buy a certain number of shares of a company's stock at a specific price within a certain timeframe. Again, they are not obligated to buy the shares if they choose not to.
Overall, an option is a way for someone to have the right to buy or sell something in the future, without being obligated to do so.