Can an option to purchase be an enforceable contract?

Alberta, Canada


The following excerpt is from Jillood v. Quantel Consultants, 1984 CanLII 1342 (AB QB):

The terms in an option to purchase must be clear. in Zachariuk v. Jones (supra) Hutcheon, J., discussed options to purchase at page 468. He said: "To be enforceable an option to purchase must be certain in all of its terms. If there are to be additional documents to complete the transaction upon the exercise of the option the terms of those additional documents must be known at the time of the execution of the option so that nothing is left to be settled by agreement between the parties. In this case there are many important terms which have been left to be settled by agreement between the parties and accordingly the option to purchase is not an enforceable contract. The action of the plaintiffs must be dismissed."

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