When you give an option to buy your restaurant, which of the following statements is NOT correct?

The correct statement is that your friend is not obligated to buy your restaurant when given an option to purchase. An option to buy is essentially a contractual agreement that gives a potential buyer (the optionee) the right, but not the obligation, to purchase a property within a specified period for a specified price. This means that your friend can decide whether or not to go through with the purchase, depending on their circumstances, preferences, or further evaluations of the property.

The nature of an option is to provide flexibility for the optionee. If your friend chooses not to exercise the option, they are under no legal obligation to proceed with the purchase, allowing them to either decide later or potentially forego the option altogether. Other elements of the option, such as identifying the optionor (you) and the potential fee that may be paid for this right, are correctly stated in the other options.