Price, conditions, and ________ are the essential elements of an option agreement.

In an option agreement, the essential elements typically include price, conditions, and term. The term refers to the specific duration of the option, during which the option holder has the right to execute the agreement or purchase the property. This duration is critical because it defines how long the buyer has the opportunity to decide whether to proceed with the transaction.

The price is the consideration for the option itself, and the conditions outline what needs to be met for the option to be exercised. Without a defined term, the agreement would lack clarity regarding the timeframe for the holder to act, which is fundamental to the enforceability and functionality of the option.

Understanding the importance of these elements helps recognize why each part is necessary for the validity and operability of an option agreement in contract law.