Ryder v. Wescoat
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Ryder v. Wescoat, 535 S.W.2d 269 (1976).
Facts: Plaintiff held an option to purchase a farm if accepted by September 1. Plaintiff rejected the offer, but later changed his mind, on Aug. 30.
Issue: Did the rejection by Plaintiff terminate the option, or can he reverse and exercise the option?
Holding: The option was not terminated; Plaintiff may still avail himself of the option to purchase.
Rule: An option contract is not terminated by a rejection prior to end of option.
Reasons:
- Party has paid for the right to keep the offer open for a certain time.
- Rejection may act as a waiver that can be retracted as long as the other party does not rely on the rejection.
- Although death of one party usually terminates an offer, it does not terminate an option.
