Final answer:
Once an optionee notifies the optionor of their intention to exercise the option, it becomes an executory contract, committing both parties to complete the transaction as per the contract terms.
Step-by-step explanation:
When an optionee properly notifies the optionor that they are exercising the option, the option now becomes an executory contract. The notification signifies the optionee's intent to proceed with the purchase or sale of the asset as specified in the terms of the option contract. At this stage, both parties are obligated to fulfill the terms stated, such as transferring the title or closing the sale within a specified timeframe.
When an optionee properly notifies the optionor that they are exercising the option, the option becomes irrevocable. This means that the optionor cannot refuse or revoke the option, and the optionee has the right to exercise the option according to its terms. Once the option is exercised, it typically results in a legally binding contract or agreement, depending on the nature of the option.