Legal Question in Business Law in New York

The short answer is yes. It has to be signed by all requisite parties named in the underlying contract to whom such option is granted. It can be a mutual option that both sides need to sign or a one party option that only one side needs to sign. An easy example would be an athlete contrat where there may be a mutual option or either the athlete or team holds the option to exercise. In any case, the option should give notice to the party again whom the option is being asserted against.

Good luck,

Michael Krigsfeld, Esq.

(1) What does the option provide? Remember that in most cases, the parties are free to craft the contract of their choice.

(2) If the obligation of the optionor consists of creating or conveying an interest in real estate (except a lease of up to three years' duration), sale of goods valued in excess of $500, certain other contracts valued in excess of $5,000, an obligation not capable of being performed within a year...(i.e. a transaction that is within the statute of frauds) then the person granting the option, the optionor, has to sign a memorandum containing the essential terms of the option.

(3) The optionee doesn't have to sign anything to receive or exercise the option under the rules of Common Law. Your mileage may vary depending on the exact flavor of the transaction. For example, if you're buying real estate then there is a pile of signed paperwork for both sides.