Libro Quinto Título I. De la promesa y de la opción

The obligation to enter into a future contract may be assumed by contract.

The promise of contract must be executed in the form required by law for the contract that is promised to be entered into.

The promise of a contract may be unilateral or bilateral.

The unilateral promise is the stipulation that a person makes in favor of another, granting the latter the option to acquire a thing or a right on the agreed terms and for the agreed time.

The option may be an independent contract or be entered into as an accessory pact of another and, in both cases, must contain the conditions under which the agreement is to be performed.

The acceptance of the option holder must be express and he may not assign his right of option to another, unless expressly authorized by the promisor.

The bilateral promise of contract binds both parties and gives them the right to demand the conclusion of the promised contract in full accordance with what was stipulated.

When the promise refers to alienation of immovable property or real rights over the same, the contract must be registered in the Property Register. 165 166

The time limit in the promise contract may not exceed two years if it involves immovable property or real rights over the same, and one year if it involves other property or performances.

If no conventional time limit is fixed, it shall be understood that the parties are subject to the time limit indicated in the preceding article.

If the promisor refuses to execute the deed to give legal form to the promised contract, the judge shall execute it in his default, unless the thing has passed to a third party in good faith, in which case the promise shall be resolved into the payment of damages and losses.

The action to demand performance of the promise shall be brought within the three months following the expiry of the conventional or legal time limit.

Once the time limit referred to in the preceding paragraph for bringing the action has expired without such action having been exercised, the parties shall be free from all obligation. In this case, if earnest money was given, it shall be returned by whoever received it.

When the promise provides for payment of a penalty without stating that such payment is without prejudice to performance of the contract, upon payment of the penalty the obligation to enter into the promised contract ceases.