|INFORMATION||Home About this Site AGEC Home|
Best if printed in landscape.
Option to Buy and Right of First Refusal
This page introduces the legal concept of an option to buy or an option to purchase. Although an option to purchase may arise in a variety of business settings, this explanation will emphasize its application to a sale of real property, that is, land.
For a period of time, the seller agrees to provide the buyer an opportunity to make an offer to buy the land.
What does it take to create an option to buy? Why would the parties want to use an option to buy? What terms would be included in an option to buy? How does an option to buy relate to the concept of a right of first refusal?
Olson v. Peterson, 288 N.W.2d 294 (N.D. 1980)
Berry-Iverson Co. of North Dakota v. Johnson, 242 N.W.2d 126 (N.D.1976)
Is consideration necessary for both an option to buy and a right of first refusal?
Does the statute of frauds apply to both an option to buy and a right of first refusal?
This material is intended for educational purposes
only. It is not a substitute for competent legal counsel. Seek appropriate
professional advice for answers to your specific questions.
|NDSU Home Phone Book Campus Map NDSU Search College of Agriculture|