Editing Option contract (section)

{{Short description|Type of contractual promise}}
{{Globalize|article|USA|2name=the United States|date=December 2014}}
{{Contract law}}
An '''option contract''', or simply '''option''', is defined as "a promise which meets the requirements for the formation of a [[contract]] and limits the promisor's power to revoke an offer".<ref>''[[Restatement (Second) of Contracts]]'' § 25 (1981)</ref> Option contracts are common in relation to property (see [[#Introduction|below]]) and in [[professional sport]]s.

An option contract is a type of contract that protects an offeree from an offeror's ability to [[Revocation|revoke]] their offer to engage in a contract.

Under the common law, [[consideration]] for the option contract is required as it is still a form of contract, cf. [[Restatement (Second) of Contracts]] § 87(1). Typically, an offeree can provide consideration for the option contract by paying money for the contract or by providing value in some other form such as by rendering other performance or [[forbearance]]. Courts will generally try to find consideration if there are any grounds for doing so.<ref>"Examples and Explanations for Contracts, 7e", Brian Blum, 2017 p. 104 [p. 109 in PDF version]. Wolters Kluwer.</ref> See [[consideration]] for more information. The [[Uniform Commercial Code]] (UCC) has eliminated a need for consideration for [[firm offer]]s between [[merchant]]s in some limited circumstances.<ref>{{cite web|url=https://www.law.cornell.edu/ucc/2/article2.htm#s2-205 |title=Uniform Commercial Code - § 2-205. Firm Offers|website=Cornell University Law School, Legal Information Institute}}</ref>