3.17 Necessity of Consideration

• Library: Real Estate Practice Deskbook (2019 Ed.)

B. (§3.17) Necessity of Consideration

As in other contracts, consideration is required for an option to be valid. But when the option lacks consideration, a court of equity may specifically enforce the contract if the option is exercised before it is withdrawn. When the option to purchase was incident to a lease, courts have held that the lessee's covenants in the lease, such as the covenant to pay rent, were sufficient consideration to support the option. Barling v. Horn, 296 S.W.2d 94 (Mo. 1956)...