An option contract is a contract that gives the right to one party to enter into a second contract with the other party at a later date.
The most common option contract deals with the sale of real estate, when the prospective buyer will be granted an option to purchase the property within a specified period of time.
If the option period expires, then neither party has any obligation to the other, but the money paid for the option is not returned.
Attorney at Law
Blado Kiger Bolan, Tacoma, Wash.