In contract law, an option to renew generally requires what to be enforceable?

• A. An option to renew requires no consideration.
• B. Consideration is required to support an option to renew.
• C. The option must be in writing.
• D. Consideration is only required for exclusive options.

Answer: (B)

An option to renew is enforceable only when it is supported by consideration. Consideration means something of value is exchanged to support the promise; the offeror’s commitment to hold the offer open is the bargain that makes the option binding. Without consideration, the promise to keep the offer open is revocable and does not create an enforceable option contract—the other party gains no right to require the offeror to keep the terms the same for a set period.

If value is given in exchange for keeping the option open (for example, a payment or other concession), the option becomes enforceable for the agreed duration. There are narrow exceptions in commercial practice, such as the firm-offer rule under the UCC, where a merchant’s written, signed promise to keep an offer open can be enforceable without consideration, but that is specific to certain sales of goods and not the general contract-law rule.

Thus, the general principle is that consideration is required to support an option to renew.