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:
“I have this hope in God that he will hear our prayers, given the firm faith we place in him: and that he will accomplish this wish of ours, seeing as it is a moderate one.”
—François Rabelais (1494–1553)
“The first lover is kept a long while, when no offer is made of a second.”
—François, Duc De La Rochefoucauld (1613–1680)
“Resolved to ruin or to rule the state.”
—John Dryden (1631–1700)