What is an option in a contract?
Saskatchewan, Canada
The following excerpt is from Eisman and Stephan (Bankrupts) v. Howard Enterprises Ltd., 1983 CanLII 2575 (SK QB):
An option is a right acquired by contract to accept or reject a present offer within a limited period in the future; Paterson v. Houghton (1909), 12 W.W.R. 330. An option, in other words, allows the optionee to acquire an irrevocable offer which he may or may not accept within a limited time in the future. In return for the consideration paid by the optionee, the optionor binds himself irrevocably to hold the offer open for the specified period of time on the terms of the offer without acquiring any rights against the optionee.
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