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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 |
| Jurisdiction: | Minnesota |
| Cited Cases: | None |
| Cited Statutes: | Restatement (Second) of Contracts § 87; Minn. Stat. § 336.2-205 |
| Date: | 02/01/2001 |
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).
FOOTNOTES
*FN1i.e., under Minn. Stat. § 336.2-205 (1996).
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