A firm offer is an offer made in writing by a merchant that will be irrevocable for a period not longer than ________
Question
A firm offer is an offer made in writing by a merchant that will be irrevocable for a period not longer than ________
Solution
A firm offer is defined under the Uniform Commercial Code (UCC) and applies specifically to merchants. According to UCC Section 2-205, a firm offer made by a merchant is an offer that is:
- Made in writing;
- Signed by the offeror (the merchant);
- Stating by its terms that it will be held open; and
- Cannot be revoked for a period of time that is not longer than three months.
In summary, a firm offer is irrevocable for a period not longer than three months. This provision is designed to provide assurance to the offeree (the party to whom the offer is made) that the offer will remain available for a reasonable period, thus encouraging business transactions and negotiations without the fear of sudden withdrawal. The three-month limit helps ensure that these offers are made with commitment while also not binding the merchant indefinitely.
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