Firm Offer Rule
Under common law, an offer to purchase can be revoked at anytime before acceptance. However, dealing between merchants, an offer can be made 'firm' or irrevocable for a certain period of time. In order for a merchant to create a 'firm offer' it must satisfy the Statute of Frauds. When dealing between merchants, the Statute of Frauds will be satisfied so long as it satisfies an authentication under the UCC Section 2-205 (a signature/mark will do). This is called the firm offer rule. Provided this occurs, the offer will stay 'firm' for a period of 90 days. If the offer is for a longer period courts will limit the offer period to 90 days.
Read more about this topic: Merchant, Significance in Law
Famous quotes containing the words firm, offer and/or rule:
“So far we have been going firmly ahead, feeling the firm ground of prejudice glide away beneath our feet which is always rather exhilarating, but what next? You will be waiting for the bit where we bog down, the bit where we take it all back, and sure enough that’s going to come but it will take time.”
—J.L. (John Langshaw)
“If the only new thing we have to offer is an improved version of the past, then today can only be inferior to yesterday. Hypnotised by images of the past, we risk losing all capacity for creative change.”
—Robert Hewison (b. 1943)
“Now, since our condition accommodates things to itself, and transforms them according to itself, we no longer know things in their reality; for nothing comes to us that is not altered and falsified by our Senses. When the compass, the square, and the rule are untrue, all the calculations drawn from them, all the buildings erected by their measure, are of necessity also defective and out of plumb. The uncertainty of our senses renders uncertain everything that they produce.”
—Michel de Montaigne (1533–1592)