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An Option Agreement for Commercial Landlord and Tenant grants the tenant the right, but not the obligation, to purchase or lease the property or extend the lease at a future date, with the final price to be determined later by agreement or valuation. This agreement sets out the terms and timeframe within which the option can be exercised, ensuring both parties understand their rights and obligations despite the price being undecided.

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The price is usually determined later through negotiation, independent valuation, or a pre-agreed formula outlined in the agreement.

Yes, if the tenant fails to exercise the option within the agreed period, the right typically lapses and cannot be enforced afterward.

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