In contract terms, an 'Option' is best described as:

• A. an extension of the contract
• B. a renewal term
• C. a modification of scope
• D. a termination for convenience

Answer: (A)

An option in contract terms is a unilateral right to extend the duration of the agreement for a defined period under pre‑agreed terms. This lets you continue the relationship without negotiating a whole new contract, often with notice requirements and possibly fixed pricing. It isn’t a renewal term, which typically starts a new term after expiration and may involve renegotiation; it isn’t a modification of scope, which would change what the contract covers; and it isn’t termination for convenience, which ends the contract. So the option to extend best describes extending the contract’s life.