Is a purchase option written on personal property, not real estate, enforceable?

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Is a purchase option written on personal property, not real estate, enforceable?

I am trying to buy a piece of heavy equipment but I need a little time to arrange financing. What I want to do is to buy a 90 day option on the equipment. My concern is that the seller will sell it to someone else and I won’t be able to get my option money back. I’m also concerned that if things do go badly a court won’t recognize the validity of a purchase option contract on non-real estate.

Asked on May 1, 2012 under Business Law, Washington

Answers:

Kenneth Berger / Kenneth A. Berger, Attorney at Law

Answered 12 years ago | Contributor

Purchase options on personal property are enforceable here in Washington State.  Ideally, the option would be in writing, state not only the consideration paid for the option period, but also the terms of the purchase itself, which should be clear and unambiguous.  The item of personal property should also be clearly referenced, usually by make, model, and serial number.  Both parties should sign the option agreement.  I suggest you have an attorney prepare the option agreement.  Good Luck!

As always, my comments are only applicable to Washington State and are not a substitute for getting competent, local, and more comprehensive, legal help.

 

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

An option to buy is enforceable. All it needs to have the elements of a contract: offer, acceptance, and an exchange of consideration. ("Consideration" is a thing or promise of value.) So if there is an offer to give you an option to buy in 90 days; you accept that offer; and if you provide consideration for that offer--such as putting down a deposit--you will have an enforceable contract.


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