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:
“If a person goes to his job with a firm determination to give of himself the best of which he is capable, that job—no matter what it is—takes on dignity and importance.”
—Hortense Odlum (1892–?)
“It may be very generous in one person to offer what it would be ungenerous in another to accept.”
—Samuel Richardson (1689–1761)
“Therefore doth heaven divide
The state of man in divers functions,
Setting endeavor in continual motion,
To which is fixed, as an aim or butt,
Obedience; for so work the honeybees,
Creatures that by a rule in nature teach
The act of order to a peopled kingdom.”
—William Shakespeare (1564–1616)