Legal Definitions - option

An option is a type of agreement that gives someone the right to buy or sell something in the future, according to specific terms that have been agreed upon. This can include property, stocks, or other assets.

For example, if someone has an option to buy a house, they have the right to purchase the house at a specific price within a certain timeframe. However, they are not obligated to buy the house if they choose not to.

Similarly, if someone has a stock option, they have the right to buy a certain number of shares of a company's stock at a specific price within a certain timeframe. Again, they are not obligated to buy the shares if they choose not to.

Overall, an option is a way for someone to have the right to buy or sell something in the future, without being obligated to do so.