Option Agreement

Business, Legal & Accounting Glossary

Definition: Option Agreement


Option Agreement


Full Definition of Option Agreement


1. Legal contract between a potential buyer and the seller of a property whereby in exchange for a fee the seller gives the potential buyer, up to a certain date, the first chance to buy that property. 2. Legal contract between two parties whereby, in exchange for a fee, one of the parties has the right but not the obligation to buy or sell a specified item at a specified price up to a specified date. 3. Legal contract between an option investor and a brokerage firm whereby the investor confirms that he or she understands the issues and risks involved in options trading and undertakes to follow the rules and regulations of the options exchange. 4. Legal contract between an employee and employer that sets the terms of the employee’s stock options.


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Option Agreement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 04, 2025 https://payrollheaven.com/define/option-agreement/.
Chicago Manual of Style (CMS):
Option Agreement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/option-agreement/ (accessed: February 04, 2025).
American Psychological Association (APA):
Option Agreement. PayrollHeaven.com. Retrieved February 04, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/option-agreement/

Definition Sources


Definitions for Option Agreement are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.