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:
“What forests of laurel we bring, and the tears of mankind, to those who stood firm against the opinion of their contemporaries!”
—Ralph Waldo Emerson (1803–1882)
“The earth only has so much bounty to offer and inventing ever larger and more notional prices for that bounty does not change its real value.”
—Ben Elton (b. 1959)
“Without doubt God is the universal moving force, but each being is moved according to the nature that God has given it.... He directs angels, man, animals, brute matter, in sum all created things, but each according to its nature, and man having been created free, he is freely led. This rule is truly the eternal law and in it we must believe.”
—Joseph De Maistre (1753–1821)