Optionee

Definition: The optionee is the person or entity holding an option—the right to choose the transaction under the option’s terms.

Example

An owner gives Jordan a 30-day purchase option. Jordan is the optionee who decides whether to exercise it.

Keep the distinction clear

The optionee holds the choice; the optionor grants it. Choosing to buy privately does not satisfy an agreement that requires a particular notice or other exercise procedure.

Related terms

Optionor · Option Contract · Time Is of the Essence

Keep studying

Option Contracts: Who Is Bound, Consideration, and Exercising the Option

References: Merriam-Webster Legal: Optionee · Cornell LII: option

Pronunciation (US): op-shuh-NEE (capitals show stress)

Pronunciation reference: Merriam-Webster