Contracts Commons^™

Two-Contract Analysis May Imperil Stock Option Plans, James F. Ward

Michigan Law Review

Stock option plans generally have withstood judicial scrutiny where they have complied with the requirements developed to control the operation of this type of arrangement. It would seem, therefore, that the future of stock options is secure against even the most critical court review-that nothing in the nature of the stock option arrangement would render it vulnerable to a general attack. The writer believes that complacency in this assumption is not now advisable. Recently a view (from a respectable authority) has been introduced unnoticed into this area, and may have gained the acceptance accorded to an unsuspected imposter. This view, …