Another common option agreement is the real estate market. The option agreement sets out the conditions under which a party has the right to acquire a property at a price determined at a later date. Exotic option is a term used to apply to a contract that has been adapted with more complex provisions. They are also classified as non-standardized options. There are a plethora of different exotic contracts, many of which are only available in over-the-counter markets. However, some exotic contracts are becoming increasingly popular with traditional investors and are listed on the stock markets. Below are some of the most common types. I am in the process of buying land next to my house. The seller wants in the clause that if I decide to sell, he has an option to buy it first (I think, at a price I buy it for). What`s the best way to protect me in this case? Thank you Under the most recent legislative amendments (i.e.dem Perpetuities and Accumulations Act 2009), option agreements that came into effect after April 6, 2010 may apply for any length of time and the duration should be negotiated between buyer and seller. Make sure you negotiate this point, otherwise the campaign option will be considered indeterminate….
not ideal from a seller`s point of view. All agreements signed before April 6, 2010 must be exercised within 21 years of the option being granted. An option contract or simply an option is defined as “a promise that fulfills the requirements for contract formation and limits the promisor`s power to revoke an offer.”  In the above scenario, the modern view of the application of option contracts now offers security to those who promise.  Essentially, as soon as a promise begins to materialize, an option contract is implicitly established between the promise giver and the promised. The promisor tacitly promises not to revoke the offer, and the promise implicitly promises to provide a full benefit, but as the name suggests, the promiseor still retains the “option” of not completing the benefit. The consideration of this option contract will be discussed in commentary (d) in the section above. In principle, the consideration is taken into account by the beginning of the representation of the promised.