I've seen a couple of publishing contracts which include a section about guaranteeing the publisher an option to acquire the author's next work. In both cases, a window of time (30-60 days) was stipulated, during which the author could not submit the work to another publisher, but at the end of that window they were free to do so if the publisher either (a) chose not to exercise the option or (b) failed to respond. My question: if the publishers DOES respond within the specified window and they DOES wish to exercise the option is the author REQUIRED to sign a contract with the publisher or can they still to choose to opt out?
It depends on the wording of the contract.
It may say that if the publisher makes you an offer on work #2 at least as good as the contract for work #1, you have to accept.
It may say that if the publisher makes you an offer of any kind for work #2, you can choose to turn it down and shop the work elsewhere, but if you get an offer elsewhere you must allow the original publisher to match or exceed the offer from the second place.
It may say that if the publisher makes you an offer of any kind for work #2, you can choose to turn it down and shop the work elsewhere, but you can only accept an offer elsewhere if the terms are more favourable than those offered by the first publisher.
It may say that if the publisher makes you an offer of any kind for work #2, you can choose to turn it down and shop the work elsewhere, no strings and no hard feelings.
If it doesn't specify, I'd ask them to clarify.
The contract should also define what 'next work' means. Next novel length work? Next book in the series? Next book in the same genre/subgenre? Next blog post you write?
What if you have an option clause but simply don't have anything to pitch? What if you've not written your next book (or even have an idea) at the time your first book is published?
Ask them to define 'next work' in the contract, so you know what you're committing to, and ask them to put in the contract whether it can be a proposal or if it has to be a completed manuscript.