Definition in English: Option money is the separate consideration paid or promised for an option contract, under which the offeror agrees to keep an offer open for a specified period. It is not automatically part of the purchase price and does not by itself prove that a sale has already been perfected.
Paliwanag sa Filipino: Bayad para panatilihing bukas ang alok — Hiwalay na konsiderasyon para sa pangakong pananatilihing bukas ang alok sa takdang panahon.
Before paying or signing
- Compare earnest money, down payment and option money — identify what the payment is for before deciding your next step
Keep the proposed agreement, receipt, payment terms and messages together while you compare the arrangements.
Legal basis
Civil Code Article 1479. The rule must be read together with applicable amendments and controlling Supreme Court decisions.
What this term means
- A valid option supported by consideration may bind the offeror to keep the offer open during the agreed period.
- The prospective buyer generally retains the choice whether to accept the principal offer.
- The parties’ actual agreement controls; calling a payment option money does not conclusively determine its legal character.
Example
A prospective buyer pays a separate amount for 30 days to decide whether to buy land. That payment may support an option rather than serve as part of the price of a completed sale.
Related civil law terms
Earnest Money · Contract Of Sale · Rescission
What to read next
Option money versus earnest money · Browse contracts content · Return to the Civil Law Glossary
Important note
This glossary entry is an educational explanation of Philippine civil law. The English definition states the primary legal concept. The Filipino explanation is provided to make the concept easier to understand and is not an official translation of the Civil Code, Rules of Court or Supreme Court decisions. Consult the controlling legal text and qualified counsel for a specific dispute.
Jurisdiction: Philippines
Last reviewed: September 2026