a. creates and encumbrance on a title
b. the right to do something at a later date.
c. optionor - gives, optionee - receives
d. just the optionor has to execute
(6) Requirements for a valid Option (CCLOMP)
C - consideration
C - competent parties
L - Legal objective
O - offer, acceptance and delivery
M- mutual agreement ( meeting of the minds)
P - proper form
Proper Legal Form for Options
1. identify the parties
2. accurate description
3. beginning and ending date
4. definite rights and terms
5. all terms ad conditions
6. signature of the optionor.
Additional Elements of an Option
1.an optionee must provide consideration to receive the right.
2. this consideration is cancelled if the option is no performed .
3. all rights and interests are assignable.