Are option contracts straightforward? Maybe not

Are option contracts straightforward? Maybe not

On Behalf of | Oct 24, 2019 | Contract Disputes |

Business contracts have an enormous amount of flexibility, which allows them to accommodate just about any type of business arrangement. While this can prove beneficial to the parties involved in negotiations, it can also present a number of challenges.

Oftentimes, contract disputes arise when one party is unable or unwilling to live up to its end of the bargain, which may sound straightforward but can actually be murky.

Take, for example, option contracts. These agreements typically allow a party to give another party compensation in exchange for the option to purchase something at a later date. Generally, these agreements secure the purchase price for a specified period of time. This can be of significant value to the purchaser. However, issues can arise when a seller ends up selling the goods in question to someone else at a higher price even though the option period has not expired.

Sounds like a simple breach of contract? There may be questions about whether the option contract was legally enforceable in the first place. Was the option period clearly defined? Was some indication given that the option wouldn’t be exercised during the option period? Was some sort of consideration given in exchange for leaving the offer open during that time period? Was there even an actual offer and acceptance of that offer? Were the parties mentally capable of entering into the contract in question? Are there indications of coercion?

These are just a few of the questions that can seep into a contract dispute. The answers to them can be of critical importance, too, making what once seemed to be a classic case of breach into something much more complicated.

Since these matters can quickly become challenging to tackle, and there can be significant financial and reputational capital on the line, Baton Rouge businesses dealing with contract disputes may be best off working with a business law attorney of their choosing. A competent legal professional in this field will know how to appropriately analyze a case and develop a legal strategy that seeks to protect a business’s best interests.