script purchase agreement

normally, the amount paid for the option is a fraction of the price to be paid upon exercise of the option to acquire the screenplay. where the producer or studio does not bother with an option but instead immediately purchases the script, a literary purchase agreement is used instead of an option agreement. option period: this is the period of time during which the purchaser may exercise the option and purchase the screenplay or lose his rights to do so (subject to his right to extend the option period).