Option Contracts

An option is irrevocable when supported by consideration for a promise to keep the offer open.

Representative cases

• McLamb v. T.P., Inc. 619 S.E.2d 577 · Court of Appeals of North Carolina
• Simecek v. Simecek 247 N.E.3d 1019 · Ohio Court of Appeals
• Slak v. Strozier 234 N.E.3d 1144 · Ohio Court of Appeals

Related Formation rules

• Contract DefinedA contract is a legally enforceable promise formed by mutual assent and consideration.
• Offer RequirementsAn offer is a manifestation of intent to be bound with definite terms communicated to an identifiable offeree.
• Termination of OfferOffers terminate by revocation, rejection, lapse, death, or destruction of subject matter.
• Firm Offers (UCC)A merchant’s signed writing assuring it will remain open is irrevocable for the period stated, up to 3 months.
• Acceptance: Mirror RuleUnder common law, acceptance must mirror the offer; additional or different terms are counteroffers.
• Acceptance by PerformanceUnilateral contracts are accepted only by complete performance.
• Acceptance by PromiseBilateral contracts are accepted by a return promise or beginning performance.
• Mailbox RuleAcceptance is effective upon dispatch unless otherwise specified.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.