Bankruptcy – Contract Interpretation

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Civil

7^th Circuit Court of Appeals

Officials: POSNER, KANNE, and HAMILTON, Circuit Judges

Bankruptcy – Contract Interpretation

No. 14-2618 Marvin H. & Gail L. Richer v. Patrick Morehead

Notice on intention to exercise conversion option in contract held valid even when received earlier than prescribed by contract.

“A particular oddity of the Richers’ argument, though not one important to this case given that the letter announcing the exercise of the conversion option predated the option‐ conversion date by only one day, is that the property owner is better off the earlier the announcement of the investor’s intent to exercise the option. An early announcement gives the owner more time to take steps to ameliorate the effect of the exercise of the option on his business—time, for example, to obtain the money required to satisfy the option demand. And even though the owner has 180 days after the conversion to make final payment, he is likely to welcome more time—people are rarely in a hurry to pay their debts”

Affirmed.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.