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:
“It is meet
That noble minds keep ever with their likes;
For who so firm that cannot be seduced?”
—William Shakespeare (1564–1616)
“Modern thought does not offer consolations, but upsets.”
—Mason Cooley (b. 1927)
“When we can drain the Ocean into mill-ponds, and bottle up the Force of Gravity, to be sold by retail, in gas jars; then may we hope to comprehend the infinitudes of man’s soul under formulas of Profit and Loss; and rule over this too, as over a patent engine, by checks, and valves, and balances.”
—Thomas Carlyle (1795–1881)