Contracts/Firm offer: Difference between revisions
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{{Contract law}} | {{Contract law}} | ||
A '''firm offer''' | A '''firm offer''' is an irrevocable offer made by a merchant. As a general rule, all offers are revocable at any time prior to acceptance, even those offers that purport to be irrevocable on their face. An exception in the [[United States]] is the merchants firm offer rule set out in [[Uniform Commercial Code]] - § 2-205, which states that an offer is firm and irrevocable if it is an offer to buy or sell goods made by a merchant and it is in writing and signed.<ref>eg., [http://www.law.cornell.edu/ucc/2/article2.htm#s2-205 Uniform Commercial Code - § 2-205. Firm Offers], Cornell University Law School, Legal Information Institute</ref> | ||
An offer by a merchant to buy or sell goods in a signed record that by its terms gives assurance that it will be held open for a certain period or until a certain time is not revocable for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months. Any such term of assurance in a form supplied by the offeree must be separately signed by the offeror. | |||
However, even when the period of irrevocability expires, the offer may still remain open until revoked or rejected according to the general rules regarding termination of an offer. | |||
==See also== | ==See also== | ||
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==References== | ==References== | ||
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[[Category:Business law]] | [[Category:Business law]] | ||
Revision as of 21:08, November 24, 2016
A firm offer is an irrevocable offer made by a merchant. As a general rule, all offers are revocable at any time prior to acceptance, even those offers that purport to be irrevocable on their face. An exception in the United States is the merchants firm offer rule set out in Uniform Commercial Code - § 2-205, which states that an offer is firm and irrevocable if it is an offer to buy or sell goods made by a merchant and it is in writing and signed.[1]
An offer by a merchant to buy or sell goods in a signed record that by its terms gives assurance that it will be held open for a certain period or until a certain time is not revocable for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months. Any such term of assurance in a form supplied by the offeree must be separately signed by the offeror.
However, even when the period of irrevocability expires, the offer may still remain open until revoked or rejected according to the general rules regarding termination of an offer.
See also
References
- ↑ eg., Uniform Commercial Code - § 2-205. Firm Offers, Cornell University Law School, Legal Information Institute
