What is a firm offer?
What will be an ideal response?
For an offer to sell goods to be a firm offer, it must meet three basic requirements:
1. It must have been made in a signed writing (no oral firm offers).
2. The offeror must be a merchant.
3. It must contain assurances that it will be held open (some indication that it will not be revoked.
A firm offer is irrevocable even though the offeree has given no consideration to support the offeror's promise to hold the offer open. If any one of the aforementioned requirements is missing, the common law applies, allowing the offeror to revoke at any time prior to acceptance. Firm offers are irrevocable for the period of time stated in the offer. If none is stated, they are irrevocable for a reasonable time, as determined by the circumstances of the case. The outer limit on the period of irrevocability for firm offers is three months, whatever the terms of the offer may say. So, the offeror who makes a firm offer and promises to hold it open for six months could revoke after three, assuming the offeree has not accepted.
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