Common use of Policitation Clause in Contracts

Policitation.  An unaccepted unilateral promise to buy or sell. Even if accepted by the other party, it does not bind the promissor and maybe withdrawn anytime. This is a mere offer, and has not yet been converted into a contract.  A contract granting a privilege in one person, for which he has paid a consideration, which gives him the right to buy certain merchandise, at anytime within the agreed period, at a fixed price.  An option without consideration is void and the effect is the same as if there was no option * However, in ▇▇▇▇▇▇▇ vs. ▇▇▇▇▇ (1972), even though the option was not supported by a consideration, the moment it was accepted, a perfected contract of sale resulted, applying Art. 1324 of the NCC. In view of the ruling of the Supreme Court, the only importance of the consideration for an option is that the option cannot be withdrawn by the grantor after acceptance. * In an option to buy, the party who has an option may validly and effectively exercise his right by merely notifying the owner of the former’s decision to buy and expressing his readiness to pay the stipulated price.