Prop 1.6 i) Let $A$ be a ring and $\hat{m} \neq (1)$ an ideal of $A$ such that every $x \in A - \hat{m}$ (set difference) is a unit in $A$. Then $A$ is a local ring and $\hat{m}$ its maximal ideal.
ii) Let $A$ be a ring and $\hat{m}$ a maximal ideal of $A$, such that every element of $1 + \hat{m}$ (ie. every $1 + x,$ where $x \in \hat{m}$ is a unit in $A$. Then $A$ is a local ring.
The proof of ii) goes: Let $x \in A - \hat{m}.$ Since $\hat{m}$ is maximal, the ideal generated by $x$ and $\hat{m}$ is $(1)$, hence there exist $y \in A, t \in \hat{m}$ such that $xy + t = 1$ hence $xy = 1 - t$ belongs to $1 + \hat{m}$ and therefore is a unit. Now use use i). QED
I'm only having trouble with part ii). I'm not sure how to prove that all of $A - \hat{m}$ are units, since the above says that for all $x \in A - \hat{m}$ there is $y \in A$ such that $xy$ is a unit. It doesn't say that $x$ is neccessarily a unit.
$$xy\;\;\text{is a unit}\implies \exists\,u\in A\;\;s.t.\;\;1=(xy)u=x(yu)\implies x\;\;\text{is a unit}$$