Option Contract
A unilateral contract in which the optionor must sell at a set price if the optionee exercises, while the optionee is not obligated to buy.
An option contract gives the optionee the right, but not the obligation, to buy a property at a set price within a set time. The optionee pays consideration for this right. The optionor must sell if the optionee exercises the option.
It is a unilateral contract, because only the optionor is bound to perform if the option is exercised.
On the exam
Exam trap
Tested in
Contracts & Agency (13% of the exam)
From definition to recall
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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.