Jurisdiction(s):
United Kingdom
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Key definition
Call option definition

What does Call option mean? A call option is a contractual right, bought for value, to acquire a specified asset (for example, shares, securities, real estate or business assets) from the grantor at an agreed “strike” price, or a price set by a pre‑agreed formula, on a stated date or within a stated exercise period. The holder has no obligation to buy; the writer must sell if the option is validly exercised. If not exercised, the option lapses on expiry. Key features typically include: identification of the underlying asset; the strike price or pricing formula; the exercise date or window (often described as European-...

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Precedent call option over land: buyer to secure planning permission; price by open market valuation (subject to minimum) with independent surveyor determination; planning agreements and option extensions—England and Wales

Precedents
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Parties

Date: [date]. Seller: [details] (Seller). Buyer: [details] (Buyer).

Definitions

  • Option: the Buyer’s right to require a transfer on paying the Price.
  • Option Fee: £[amount] plus any VAT; non-refundable.
  • Option Period: from today until [4:00 pm] on the day [10] Working Days after the Cut Off Date.
  • Deposit: £[amount], if applicable under clause 7.
  • Price: as agreed or fixed under clause 10.
  • Property: the land described and identified in this Agreement.

Grant of Option

In return for the Option Fee (receipt acknowledged), the Seller grants the Option. The Fee does not reduce the Price [unless expressly stated]. The Option expires if not exercised within the Option Period.

Exercising the Option

The Buyer may serve an Option Notice during the Option Period, for the whole Property, and [must pay any required Deposit as specified].

Price

The Price is the greater of any Minimum Price and the Open Market Value, to be agreed or determined by an Independent Surveyor whose decision is final save for manifest error.

Notices

Serve by hand or pre-paid post/recorded delivery to the relevant service address; deemed received as specified.

Governing law and Jurisdiction

English law applies; the courts of England and Wales have exclusive jurisdiction...

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Web page updated on 22/05/2026

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