seller's option contract

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Seller's Option Contract

A contract between a buyer and a seller where the seller has the ability to delay settlement of the contract beyond the normal time. A seller may exercise this option if he/she has difficulty in making delivery on the contract for any reason at all. The farthest possible settlement date is stated in the seller's option contract. This contrasts with a cash contract, where settlement is made before the regular settlement date.
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seller's option contract

A security transaction in which the date of settlement is delayed beyond the five business days in a regular-way contract. This very unusual transaction is generally caused by the unavailability of a certificate for regular delivery. The settlement date will be specified. See also cash contract.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Request of best offers and proposals in public auction to export 25,000 tons, plus/ minus 10 % at sellers option, of alcohol of not less than 95 % purity of the 2012 season for delivery in bulk FOB at Damietta port for shipment during the period March to July 2012.
Request of best offers and proposals in a public auction for the export of 10,000 tons, plus/ minus 10 % at sellers option, of cane molasses of 2011 production for delivery FOB in bulk at Alexandria Port during December 2011.
Request of best offers & proposals for the export of 34,000 tons, plus/ minus 10 % at sellers option, of sugar beat residuals of the 2011 season.