Olsen v. Northern Steamship Co.

Citations

• 70 Wash. 493
• 127 P. 112
• 1912 Wash. LEXIS 1073

Syllabus

<p>Corporations — Stock — Sale — Option to Resell — Time and Method of Exercise. An agreement providing that, in case plaintiff should be discharged from defendant’s employ, the defendant would, within six months thereafter, at plaintiff’s option, take redelivery of defendant’s corporate stock purchased by plaintiff, and repay plaintiff par therefor, fixes an option for a fixed period which must be exercised within the six months by redelivery of the stock, and it is not sufficient that notice of election to redeliver, with a demand, was made by letter posted within the time limit.</p> <p>Same — Option—Tender—Waiver. Failure to answer a letter giving notice of an election to exercise an option to redeliver stock, posted on the last day of the option period, does not constitute a waiver of the failure to tender the stock as required by the option, where the letter was not received until the option period had expired.</p> <p>Sales — Ultra Vires Acts — Repurchase of Stock. If a sale of stock to a corporate employee, with an agreement by the corporation to repurchase its own stock in case of discharge, was ultra vires, it was divisible, and not being void in toto, the sale was absolute.</p>