Bactalicontrahendo - Option and Preference Contracts

The offerer can terminate the offer before it has been accepted by communicating the revocation with the offeree.

An option may be transferred through session unless it is prohibited in terms of the option or if the option is personal to the offeree.

In such cases, the option may not be transferred because it will be personal to the offeree.

<p>An option renders an offer irrevocable, and any attempt to revoke the offer constitutes a breach of contract.</p> Signup and view all the answers

<p>Failure to specify a time period for exercising the option will result in automatic termination.</p> Signup and view all the answers

<p>The death of either party does not terminate an option unless explicitly or implicitly stipulated in the contract.</p> Signup and view all the answers

<p>To restrict the offeror's right to revoke an offer, keeping the offer open for a specified period of time.</p> Signup and view all the answers

<p>A preference contract binds one person to give preference to another when concluding a specific type of agreement.</p> Signup and view all the answers

<p>Exercise the option and accept the offer.</p> Signup and view all the answers

<p>Yes, an option may be granted graciously without any consideration.</p> Signup and view all the answers

<p>The main offer and the ancillary offer.</p> Signup and view all the answers

<p>For the stipulated period of time mentioned in the contract.</p> Signup and view all the answers

<p>It must be in writing to be valid.</p> Signup and view all the answers

<p>No, the formality requirements for the main offer do not apply to the ancillary offer.</p> Signup and view all the answers

<p>They can cancel the contract and seek restitution, or uphold the contract and claim damages.</p> Signup and view all the answers

<p>To put the innocent party in the financial position they would have been in if the other party had complied with the option.</p> Signup and view all the answers

<p>A preference contract is an agreement where one person binds themselves to give preference to another if they decide to conclude a specified type of agreement.</p> Signup and view all the answers

<p>A right of first refusal or a right of preemption.</p> Signup and view all the answers

<p>The same civil remedies as discussed under options, as well as the ORIX mechanism.</p> Signup and view all the answers

<p>When a seller concludes a contract of sale with a third party in breach of the right of preemption.</p> Signup and view all the answers

<p>A remedy concluded between the seller and the holder of the right of preemption.</p> Signup and view all the answers

<p>As discussed in the textbook, this remedy has practical problematic areas and criticisms.</p> Signup and view all the answers

<p>If the seller concludes a contract of sale with a third party in breach of the right of preemption.</p> Signup and view all the answers

<p>The grantee may use the ORIX mechanism to stop the conclusion of a contract or sale of the property if the grantor is in violation of the preference contract.</p> Signup and view all the answers

<p>The main difference is that a right of preemption involves a negative contract not to sell the property to a third party without giving the grantee first refusal, while a preference contract creates both negative and positive obligations for the grantor.</p> Signup and view all the answers

<p>A grantor cannot avoid a preemption agreement by making an unreasonable offer; they must make a good faith offer to the grantee if they decide to sell.</p> Signup and view all the answers

<p>Objective criteria can be used to assess if the grantor is acting in bad faith when making an offer to the grantee.</p> Signup and view all the answers

<p>The grantor must keep the offer open for a reasonable period of time when making an offer to the grantee.</p> Signup and view all the answers

<p>A grantor may withdraw the offer made to a grantee if they genuinely change their mind about selling the property, unless an option has been entered into with the grantee.</p> Signup and view all the answers

<p>The terms and conditions stipulated in the preference contract must be incorporated in the offer made to the grantee by the grantor.</p> Signup and view all the answers