Option Agreement

An Option Agreement is a legal contract that gives one party the right, but not the obligation, to buy or sell an asset—such as property, stocks, or intellectual property—at a specified price within a set time frame. It outlines the terms, including the price, duration, and conditions for exercising the option. This agreement provides flexibility and protection for both parties; the buyer can secure the opportunity to purchase later, while the seller retains the possibility to sell without immediate obligation. It’s commonly used in real estate, finance, and business negotiations.