Issue: Under the laws of the state of Minnesota, must a party give valuable consideration for an option agreement to be valid?
|Area of Law:||Business Organizations & Contracts|
|Keywords:||Valid Option Agreement; Valuable Consideration|
|Cited Statutes:||Restatement (Second) of Contracts § 87; Minn. Stat. § 336.2-205|
Valuable consideration actually given is not the only means by which an option becomes valid. An option becomes binding if any of the following is true: (1) consideration is received for it, or (2) detrimental reliance by the buyer occurs and was foreseeable by the Seller, or (3) a statutory "firm offer" is made.FN1 Restatement (Second) of Contracts § 87 (1981).
FN1i.e., under Minn. Stat. § 336.2-205 (1996).