Eyon owns all of the stock in Eyon Inc. He has heard that Orlin, who owns all of the stock in Orlin Inc., might wish to sell it. In December, the two exchange these signed writings:
December 1, 2019, Eyon: I may wish, within the next year, to purchase all of your stock in Orlin. I'll pay $15 million, but I need one year— until November 30, 2020—to make my decision. I am prepared to pay $100,000 tomorrow, December 2, in order to have from you this commitment: If, during this next year, I wish to make the purchase, you'll sell for that price.
December 1, 2019, Orlin: Agreed. Please send the payment.
Eyon sends Orlin $100,000. On December 2, Orlin receives it. Then, on May 1, 2020, Orlin contacts Eyon:
May 1, 2020, Orlin: Not hearing from you in five months, I have decided not to sell you the stock. I revoke my offer and will return your $100,000.
May 1, 2020, Eyon: No, no, no; that's not acceptable. As we agreed, I may still wish to purchase the stock and I will make my decision on or before November 30.Does Eyon retain the right, through November 30 to purchase the stock?
A.Yes, because on December 1 he acquired a one-year option to do so
B.Yes, because he proposed to pay the $100,000 within one day
C.No, because corporate stock is not a good
D.No, because Orlin stood ready to return Eyon's $100,000