Steiner

Plaintiff Martin A. Steiner, and his partial assignee, intervener Siddiqui Family Partnership (hereafter collectively referred to as plaintiffs), seek specific performance of a sales agreement with defendant property owner Paul Thexton. Based on language granting Steiner “absolute and sole discretion” to terminate the transaction, the Court of Appeal construed the agreement as an option and further concluded the option was revocable because it was unsupported by consideration. The Court of Appeal also rejected plaintiffs’ claim that promissory estoppel required the agreement’s enforcement. The court therefore upheld the trial court’s refusal to order specific performance of the agreement.

We agree the agreement was an option; however, we conclude sufficient consideration existed to render the option irrevocable. We accordingly reverse the Court of Appeal’s judgment and remand the action for further proceedings. In light of our conclusion, we need not reach the promissory estoppel issue.

I. FACTUAL AND PROCEDURAL BACKGROUND

In 2003, Steiner, a real estate developer, was interested in purchasing and developing several residences on a 10-acre portion of Thexton’s…