Sec. 245. Definition and Nature, Real Estate Options. Sec. 246. Formal Requisites. Sec. 247. Form of Options. Sec. 248. Consideration. Sec. 249. Statute of Frauds. Sec. 250. Option Contract Distinguished From Contract of Sale. Sec. 251. Option Contract Distinguished From Agency. Sec. 252. Assignability of Option Contract. Sec. 253. Time of Exercising Option Contract. Sec. 254. Discharge of Option Contract. Sec. 255. Payment and Tender. Sec. 256. Effect of Exercising Option or Election. Sec. 257. Against Whom Enforceable. Sec. 258. Remedies. Sec. 259. Specific Performance. Sec. 260. The Option Upheld. Sec. 261. The Option Defeated. Sec. 262. Controversy as to the Character of the Instrument.

Sec.245. Definition And Nature-Real Estate Options

An option may be defined as a contract by which the owner agrees with another person that he shall have the privilege of buying his property at a fixed price within a specified time. It is neither a sale of land nor an agreement to sell, but merely the disposal of a privilege of electing to buy in accordance with the terms and conditions of the option contract.1 An option contract does not consist of a privilege to purchase only but it may be a privilege to sell in which case the right of election is with the seller.2 Such option contract, before acceptance, vests no title, legal or equitable in the optionee, and the assignment thereof by the optionee, vests no title to the land, legal or equitable, in his assignee.3

1. Cameron v. Shumway, 149 Mich. 634; Barnes v. Husted, 219 Pa. St. 287, 68 Atl. 839; Benedict v. Pincus, 191 N. Y. 377, 84 N. E. 284.

2. Morgan v. Forbes, 128 N. E.

792.

3. West Virginia Pulp & Paper Co. v. Cooper, 106 S. E. 55.