- There can be an option to buy/purchase property or an option to sell property
- Generally speaking we deal more frequently with options to purchase.
- Option is described as an offer to purchase (or sell) property coupled with an undertaking not to revoke the offer for a period of time
- Therefore two distinctive parts:
- An ordinary offer to purchase (or sell) property (which must comply with all the requirements for offers in general)
- An Undertaking by the option grantor to hold the offer open for acceptance by the grantee. The time limit is usually stated but this is not a requirement.
- The Option comes into existence once the grantee accepts the grantor's undertaking to keep the offer open, ie accepts the second part of the option.
- Therefore where a buyer is interested in a particular property and would like an option to buy it, the option can be effected only if the seller makes an;
- offer to sell the property to the buyer and
- undertakes not to revoke the offer before a certain date
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