Banking and Finance (27)

Corporate Law (20)

Employment (15)

Insolvency and Restructuring (20)

Real Estate (16)

Tax Law (19)

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Terms found Action for the restoration of ownership Amended dismissal Annuity Appeal against a decision Asset Assignment of Claims (Cession) Austrian Public Employment Service (AMS) Banking secrecy Bankruptcy proceedings BaSAG Book value / carrying amount Branch Brokerage Agreement Building Law Business Business entity Call for Tenders Capitalisation Casual Employment Certification Change in Operations Collective Bargaining Agreement Company Agreement Company Pension Comparison of business assets Compensation Compliance Compulsory enforcement Consumer Protection Act Corporate Reorganisation Act (URG) Corporation Covenants Debt restructuring Debtor Declaration of consent Decree Deferral Discount Dividend Double taxation Double-entry bookkeeping Easement Employee Stock Ownership Equity Equity loan Factoring Fees Act Financial plan Foreclosure sale Foreign-currency loan General partnership General Protection Against Dismissal Global assignment GmbH Group taxation Guarantee Guarantee credit Hidden reserves Hire Purchase Insolvency Insolvency Act Insolvency administrator Insolvency estate Insolvency register Inspection of the Land Register Inventory Land Register Letter of comfort Lien Limited partnership Liquidation Loan Loss Carryforward Maternity leave Merger Natural person Nominal value Option Outsourcing Part-time work Partnership Personal insolvency Pledge principle Preliminary decision on an appeal Progression Prohibition of alienation and encumbrance Prohibition on the repayment of deposits Property income tax Provision Proxy Public Limited Company Reallast Repayment Restriction on Transfer Restructuring proceedings Retention of title Revision Right of first refusal Right of retention Rights in rem Self-consumption Severance Pay Severance Pay new Severance Pay old Shareholder loans Short-time work Silent partnership Skimming procedure Social Plan Sole Proprietorship Standard value Stock Subscription right Superstruction Supervisory Board Tenancy agreement Works Council

Option

What is an option?

Under an option contract, one party (the option grantor) grants the other party (the option holder) the right to bring into effect a contractual obligation whose terms have been predetermined. This contractual obligation comes into effect simply by the exercise of the option, which immediately triggers the contractual obligations. This distinguishes the option from a so-called preliminary contract, which merely establishes the right to conclude a main contract. From a legal perspective, in an option contract the option grantor makes an offer to the option holder, which the latter accepts by exercising the option.

What rights does an option confer in the context of insolvency proceedings?

In insolvency proceedings, the insolvency administrator or, in the case of a self-administered restructuring procedure, the debtor is not bound by an offer that the debtor made to another party prior to the commencement of insolvency proceedings. The option therefore lapses in the insolvency proceedings of the option grantor. By contrast, the insolvency proceedings of the option holder do not affect the rights arising from an option granted to them. These may be exercised by the insolvency administrator or the debtor in reorganisation proceedings under self-administration.

What is the difference between a call option and a put option?

In the case of a call option, the option writer grants the option holder the right to purchase an asset or a right. If the option holder exercises their call option, the option writer must sell to them. In the case of a call option, the option writer is therefore the seller. In the case of a put option, on the other hand, the option writer grants the option holder the right to sell an asset or a right. If the option holder exercises their put option, the option writer must buy from them. In the case of a put option, the option writer is therefore the buyer.

Learn more about our Banking and Finance Law practice area. Please feel free to contact us for further information.