OPTION MONEY Consideration for the grant of the option Determine whether the grantor can unilaterally withdraw

the option within the option of period

EARNEST MONEY Indicative of a contract of sale Considered down payment, an initial payment of the price.

BIBLE BAPTIST SERRA SAME SITUATION: a contract of lease with an embedded option to buy ADVANCE PAYMENT FORFEITURE OF RIGHT of a certain amount There was a special provision, that In case of failure to exercise the option there would be forfeiture of the improvements introduced by the lessee HELD There was NO CONSIDERATION THERE IS CONSIDERATION DISTINCT FROM THE PRICE SEPARATE FROM THE PRICE The ADVANCE PAYMENT COULD IF YOU HAVE A CASE OF LEASE NOT BE CONSIDERED A WITH AN EMBEDDED OPTION CONSIDERATION DISTINCT FROM THERE SHOULD ALWAYS BE A THE PRICE CONSIDERATION. SJP RATIO: this is somehow RATIO: faulty because If you are the We assume that lessee agree lessee, why will you pay in to the terms and conditions of advance if you are not being the lease because of the given a bonus in the form of option, maybe it was factor in the the option to buy. rental, maybe on penalties. Although in Serra case, It was very explicit on the forfeiture.

RIGHT OF FIRST REFUSAL Does not provide the price or cause done only when there is a decision on the part of the grantor to dispose the property. Prior to that nothing can be done by the grantee. subject to enforcement when an action speaks of specific performance.

OPTION A COMPLETE OFFER You have the object to buy the specific property at a specific price at a specific period That is in fact an offer If its made into a contract then it is an option contract