Option agreement essence

option agreement essence

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Consequently, the trigger notice does not need to be signed by both parties. Time limits and the rule against perpetuities Time limits Where the option agreement specifies time limits for the service of the trigger notice, time is of the essence.

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The option will usually specify that the grantee must exercise it within a specified period of time. If the option is not exercised within that time then it will lapse.

Is Time Really of the Essence? - Field Law

A notice of an intention to exercise the option given without authority within the option period cannot be made effective by ratification after the end of that period. The option holder must therefore ensure that, if the buyer is to obtain planning permission before exercising the option, the period allows sufficient time for planning applications and appeals to be decided.

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