contracts
optionee
The optionee is the party who receives an option in an option contract, meaning the right but not the obligation to buy or lease property at a set price within a set time. The optionee pays the optionor consideration for this right. Until the optionee exercises the option, only the optionor is bound, making the option a unilateral contract during that period.
- Exam tip
- Remember: the optionor (owner) is bound; the optionee (buyer) has the choice. When the optionee exercises the option, it becomes a bilateral sales contract.
- Example
- A developer pays a farmer $5,000 for a one-year option to buy land for $500,000. The developer is the optionee and may walk away, losing only the $5,000.
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Last verified: 2026-10-23