Dictionary of Procurement Terms

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Search Results: 1-6 of 6 results for “Option”

  • Buyer’s Option

    The contractual right, established in a purchase document, to buy an item or service at a fixed price within a specified time.

    See Also: Option

  • Future Option

    A contract entered into to buy or sell a currency, security, or commodity at a fixed price for delivery sometime in the future at a date to be determined. (Business, 2002)

  • Option

    A unilateral right in a contract which the jurisdiction may choose to exercise to purchase additional supplies or services called for in the contract, or to extend the period of performance.

    See Also: Buyer’s Option

  • Option to Extend

    In accordance with contract terms, an option that allows a continuance of the contract for an additional period of time.

    See Also: Option to Renew

  • Option to Renew

    A contract provision that allows a party to reinstate the contract for an additional term, beyond that stated in the original contract, in accordance with contract terms.

    See Also: Option to Extend

  • Seller’s Option

    1. A supplier’s right to compel a purchaser to buy at a particular price and time. 2. On option granted to the supplier to make delivery within a specified, limited period.