What happens to a contract with an option if the right is executed?

When the right in an option contract is executed, it means that the party holding the option has opted to exercise that right, which transforms the option into a binding contract. An option essentially provides one party the ability to enter into a contract under specified terms, but until the option is exercised, it does not create any obligation for the other party.

Once the right is executed, the terms outlined in the option are typically enforced, and both parties are legally bound to fulfill their obligations as stated. This is a crucial concept in contract law, as it highlights the change in status from a mere possibility to a definitive agreement.

The other options do not accurately reflect the legal implications of exercising an option. Continuing negotiations would suggest that no commitment has been made, which contradicts the very nature of the executed option. Similarly, the agent's ability to terminate the deal would depend on various factors but does not apply in the context of a binding agreement following execution. Lastly, an option cannot become void immediately upon execution; rather, it activates the terms of the original agreement.