A type of option which grants a right (but not an obligation) for a potential buyer to acquire an asset from a seller at a specified price (or a price to be calculated in accordance with a pre-agreed formula). The option is generally exercisable during a specified period. Call options can be used in joint ventures as a method of resolving deadlock situations. For example, if A has a call option enforceable against B, A can require B to sell B’s shares to him.

See Standard document, Call option agreement and Drafting note, Call option agreement.

For an overview on options, see Practice note, Derivatives: overview (UK): Option.