Simple English definitions for legal terms

Option Contract

Read a random definition: right in re aliena

A quick definition of Option Contract:

An option contract is a special type of promise. When someone makes an offer and you want to keep that offer available for a certain amount of time, you can pay for an option contract. This means that the person who made the offer cannot take it back because you paid for the right to keep the offer open. It's like buying a ticket to a show - once you have the ticket, the theater can't sell it to someone else because you already paid for it.

A more thorough explanation:

An option contract is a type of agreement where the offeror promises to keep an offer open for a certain period of time in exchange for payment. Once the payment is made, the offeror cannot revoke the offer.

For example, let's say John wants to buy a house from Jane. Jane offers to sell the house to John for $200,000, but John is not sure if he wants to buy it yet. Jane offers John an option contract, where John pays $5,000 to keep the offer open for 30 days. During this time, Jane cannot sell the house to anyone else. If John decides to buy the house within the 30 days, he can do so for $200,000. If he decides not to buy the house, Jane keeps the $5,000 as compensation for keeping the offer open.

Another example of an option contract is when a company offers an employee the option to buy company stock at a certain price within a certain time frame. The employee pays for the option, and if the stock price goes up, the employee can buy the stock at the lower price and make a profit.

Option contracts are commonly used in real estate, finance, and employment agreements. They provide a way for parties to negotiate without the risk of the offer being revoked.

Option ARM | Option to Cure


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yay pookie! congrats!
omg this guy on the deposition is screamingggg
And congrats!!!!!!<3
like it's crazy
i've heard great things about UVA! I visited upenn and hated it so much / felt so uncomfy there and the starbucks by campus got robbed while i was there waiting for my tour to start lol
@OptimisticOutlier That sounds terrible, I'm sorry you had to experience that lol. Can I ask what made you feel uncomfortable? Like the sketchy vibes of the city or like the camp\us itself etc.?
penn is in a nice area
right next to drexel
it was campus itself, honestly i can't explain what it actually is. I felt the same way when I was touring schools for undergrad, pretty much pulled up to upenn and told my mom i knew i didn't like it and didn't need to take the tour lol
would argue with the nice area piece lol i think all of philly is kinda scary, someone pulled a gun on my team while we were down for a football game at upenn and walking around at night
but that said, i'm pretty happy i moved to pa after school and i know lots of people love upenn!
dear god is that sketchy
definetly safer than how its being described
people are absolutely crwzy
yeah yeah will 10000% agree i've had like bad outlier experiences lol
u are the optimistic outlier after all
how do i tell my boss im quitting and need to take off on monday (visiting ND on monday to meet with dean and check the vibes, was gonna put in my 2 weeks regardless
i luv being an art hoe snob
believe it or not i didn’t miss any calls
Lol all of philly is a dumpster fire
Yet i am moving there for law school in 14 days lol
@OptimisticOutlier: congratulations!!!
I live in that area. It isn't bad at all
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