| Commentary

26.3 Drafting points---options

| Commentary

26.3 Drafting points---options

An enforceable, unambiguous option will generally cover the following matters:

  1. (a)

        A clear statement of what the option holder is to receive when he exercises the option. For example, if it is an option to enter into a further agreement (such as a patent licence), are the terms of the licence attached to the option agreement, or is there an enforceable mechanism for agreeing those terms?

  2. It should be borne in mind that a bare obligation to negotiate an agreement in good faith is not legally binding1. This proposition appears to extend also to where there is

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