option

A right of choice or election. Sometimes applies specifically to contracts whereby one purchases the right for a certain time, at his election, to demand and receive or to deliver property at a stated price. See "Gambling Contract."

Choice; election. A contract by which A, in consideration of the payment of a certain sum to B, acquires the privilege of buying from or selling to B, specified securities or property at a fixed price within a certain time. Story v. Salomon, 71 N. Y. 420; Harris v. Tumbridge, 83 N. Y. 93, 38 Am. Rep. 80S. “A unilateral agreement, binding upon the optioner from the date of its execution, but [which] does not become a contract ititcr partes, in the sense of an absolute contract to convey on the one side and to purchase on the other, until exercised by tbe optionee;” Barnes v. Rea, 219 Pa. 279, 68 Atl. 836. An option is not a sale, but a right to exercise a privilege, and only when that privilege has been exercised in the manner provided in the agreement does it become a binding contract; id. It is said that options have been universally construed by the courts as binding agreements to keep an offer open; 18 Harv. L. Rev. 457; Perry v. Paschal, 103 Ga. 134, 29 S. E. 703; but Prof. Langdell takes the view that an option is a complete unilateral contract, which can never become a bilateral contract, and differs entirely from an offer; 18 Harv. L. Rev. 1, 11. As to how far an option to buy land works a conversion, see id. 1. Where notes are given to cover losses on deals in options in grain, a part of which is to be delivered, the illegality of a part taints the whole, the consideration being entire; Supp. 107; [1892] 2 Q. B. 484; Scott v. Brown, 54 Mo. App. 606. The sale of commodities to be delivered at a future day is not per sc unlawful where the parties intend in good faith to comply with the terms of the contract; Mohr v. Miesen, 47 Minn. 228, 49 N. W. 862; Morrissey v. Broomal, 37 Neb. 766, 56 N. W. 383. See Wager; Contracts. These options are of three kinds, viz.: “calls,” “puts,” and “straddles,” or “spread eagles.” A call gives A the option of calling or buying from B or not certain securities. A put gives A the option of selling or delivering to B or not. A straddle is a combination of a put and a call, and secures to A the right to buy of, or sell to, B or not. Where neither party, at the time of making the contract, intends to deliver or accept the shares, but merely to pay differences according to the rise or fall of the market, the contract is void either by virtue of statute or as contrary to public policy; 11 C. B. 538. In each transaction the law looks primarily at the intention of the parties; and the form of the transaction is not conclusive; Story v. Salomon, 71 N. Y. 420; 5 M. & W. 466; North v. Phillips, 89 Pa. 250. Option contracts are not prima facie gambling contracts; Story v. Salomon, 71 N. Y. 420. But see Lyon v. Culbertson, 83 111. 33, 25 Am. Rep. 349. See Dos Passos, Stock-Brokers.

Right of choice. Option contract: a contract of sale so called by which the property is not to be delivered, but the transaction is to be closed on a future day, by the payment by one party to the other of a sum equal to the increase or decrease in value, v. Buyer's option; Local option.

In Erlglish ecclesiastical law. Option: a customary prerogative of an archbishop, upon consecration of a bishop, to name a clerk or chaplain to the next presentation of such dignity or benefice in the bishop's disposal as the archbishop shall choose.

In English ecclesiastical law. A customary prerogative of an archbishop, when a bishop is consecrated by him, to name a clerk or chaplain of his own to be provided for by such suffragan bishop; in lieu of which it is now usual for the bishop to make over by deed to the archbishop, his executors and assigns, the next presentation of such dignity or benefice in the bishop's disposal within that see, as the archbishop himself shall choose, which is therefore called his "option." 1 Bl. Comm. 381; 3 Steph. Comm. 65, 64; Cowell. In contracts. An option is a privilege existing in one person, for which he has paid money, which gives him the right to buy certain merchandise or certain specified securities from another person, if he chooses, at any time within an agreed period, at a fixed price, or to sell such property to such other person. If the option is for the buying, it is denominated a "call." If it gives the choice of selling or not, it is called a "put." If it is a combination of both these, and gives the privilege of either buying or selling or not, it is called a "straddle" or a "spread eagle." These terms are used on the stock-exchange.

Right of choice, selection or election, A covenant in a lease giving the option to purchase is in the nature of a continuing offer to sell.'' The option to avoid or accept a sale by a trustee is to be exercised within a reasonable time.^ Buyer's option. A right on the part of a purchaser to take' and pay for the purchase at any time within a given period.^ Iiocal option. Refers to a law which enables voters to decide whether licenses to sell intoxicating liquors within their particular district or locality shall or shall not be granted. The weight of authority favora the constitutionality of local option laws. A legislature cannot delegate its power to make a law, but it can make a law to delegate power to determine some fact or the state of things upon which the law makes, or intends to make, its own action depend. There are many things, upon which wise and useful legislation must depend, which cannot be known to the law-making power, and must, therefoi'e, be a subject of inquiry and determination outside of the halls of legislation.' Compare Prohibition, 2. Option contract. An agreement between the so-called " buyer " and " seller " of a commodity (or a security for money) that they will adjust the account between them at a future day by one paying the other the difference in the market value of the article on that day as compared with the value on the day of "sale." A contract for the sale of property to be delivered at a future time at the option of the purchaser, there being no understanding by both parties that the property is to be delivered, but rather that the obligation is to be satisfied by the payment of differences, is void." The question of the legality of sales by option de- ^ United States v. Deaver, ante. 2 Willard v. Tayloe, 8 Wall. 564 (1869), cases. ' Twin-Lick Oil Co. v. Marbury, 91 U. S. 591 (1875). * [Pickering v. Demerritt, 100 Mass. 421 (1868), Foster, Judge. "Locke's Appeal, 72 Pa. 498, 494-508 (1873), cases; Halley v. State, 14 Tex. Ap. 510-12 (1883); Menken v. Atlanta, Sup. Ct. Ga. (1887); State v. Pond, Sup. Ct. Mo. (1888); 12 Am. Law Reg. 129^3 (1873), cases; 12 Cent. Law J. 123-27 (1881), cases; 36 Ark. 69; 42 Conn. 364; 4 Harr., Del., 479; 42 Ind. 547; 33 Iowa, 134; 14 Bush, 671; 42 Md. 71; 108 Mass. 27; 109 id. 199; 62 Mo. 168; 36 N. J. L. 720; Cooley, Const. Lim. 125. pends in part on local legislation, in part on judicial precedent, and in part on the special tendency ot the adjudicating court with respect to political economy.' See further Futures; Put, 3; Wagek, S. OR. 1. The ending -or, in assignor, consignor, covenantor, devisor, donor, grantor, obligor, payor, vendor, vrarrantor, and like words, designates the actor or doer; while -ee, designates the recipient — the person toward whom the action is directed, for whom the thing is done, as in assignee, consignee, devisee, etc. Originally, a Latin suffix. The corresponding active form of apx)e Uee, appointee, distributee, drawee, patentee, transferee, is, for the most part, the English suffix -er; as, drawer, transferrer, etc.' 2. The disjunctive particle "or" will be read "and" when such change will give effect to the evident intention of law makers, testators, or contracting parties.^ It cannot be construed " and " in a penal statute -when the effect is to aggravate the offense.* "Or" may be used in the sense of "to wit," explaining what precedes. In this sense an indictment may adopt the words of the statute; as, "a bank-bill or promissory note," a horse of "a bay or brown ^jolor." But "spirituous or intoxicating liquor " may be bad for uncertainty.' An indictment for betting on a game of " hazard or skill " is unobjectionable.* Under a statute against permitting gaming in a "*' dram-shop," an indictment for gaming in a " dramshop or grocery " is not bad for the surplusage.' See And.

The prerogative of an archbishop on to have the latter provide a living for a clerk mer. Optional writ: a writ framed in the thing or show cause.

1. In reference to contracts, a choice between alternatives; a right of election. 2. In ecclesiastical law, the archbishop has a customary prerogative, when a bishop is consecrated by him, to name a clerk pr chaplain of his own to be provided for by such bishop; in lieu of which the bishop used to make over by deed to the archbishop, his executors and assigns, the next presentation of such dignity or benefice, in the diocese witliln the bishop's disposal, as the archbishop himself should choose; which, therefore, was called his option. Cowel; 1 Bl. Com. 381; 2 Steph. Com. 689. Optional -writ. Original writs were either optional or peremptory. An optional writ, otherwise called a prcecipe, was a writ commanding a defendant to do a thing reant his choice, either to redress the injury or to stand the suit. Mozley ^ W.

Choice; Election, (q.v.) where the subject is considered. OR, in the termination of words, has an active signification, and usually denotes the doer of any act; as, the grantor, he who makes a grant; the vendor, he who makes a sale; the feoffor, he who makes a feoffment. Litt. s. 57; 1 Bl. Com. 140, n. o ‘ ORATOR, practice, is a good man, skilful in speaking well, and who employs a perfect eloquence to defend causes either public or private. Dupin, Profession d’Avocat, tom. 1, p. 19. In chancery, the party who files a bill or answer calls himself in those pleadings your ora-