What Is An Important Legal Characteristic Of An Option To Buy Agreement

Before the land trust negotiates with others, it wants to receive an option to purchase the trust. The purchase price of the easement is set at the total value, but it is not paid unless others agree to accept less than 50% of the value. The critical term for the land trust is the length of the option exercise period, as it will take some time to look for ways to fill the funding gap. The last essential component of the purchase contract is compensation. At its most basic level, compensation is a method of allocating and carrying forward planned and unforeseen risks. The party accepting the compensation is obliged to compensate the other party if it suffers damage as a result of the performance of the contract. Without indemnification provisions, the parties` recourse to failure to make representations and warranties or other breaches is limited to a claim for breach of contract or any form of fraud. . . .

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