option

An agreement by which one binds himself to perform a certain act, usually to transfer property, for a stipulated price within a designated time, leaving it to the discretion of the person to whom the option is given to accept upon the terms specified. 17 Am J2d Contr § 32. A continuing offer to sell at a price stipulated. Hirlinger v Hirlinger (Mo App) 267 SW2d 46, 44 ALR2d 1207. A stipulation not to revoke for a specified or reasonable time the offer therein made. Warner Bros. Pictures v Brodel, 31 Cal 2d 766, 192 P2d 949, 3 ALR2d 691. A future contract in which one of the parties has the right to insist on compliance with the terms of the contract, or to cancel the contract, at his election. A unilateral contract where given upon a contemporaneous consideration other than a promise. 17 Am J2d Contr § 5. A simple method of speculating in the rise or fall of the market price of commodities or stocks, no actual transaction by sale or purchase being contemplated. 24 Am J1st Gaming § 70. In the entertainment and professional athletic fields, an offer to perform as an actor, musician, etc., or as a baseball player, football player, etc. at a stipulated compensation within a designated time, leaving it to the person to whom the option is given to accept upon the terms specified. 17 Am J2d Contr § 32. The privilege which an archbishop had of nominating his bishop's clerk. See 1 Bl Comm 381. See stock option; stock-option plan.