Asked by Becky Tseng on May 26, 2024
Verified
Edwin,Marketing VP of Amalgamated Sales,Inc. ,writes a letter dated August 1 to Bargain Stores,Inc.offering to sell candy to Bargain Stores at $50 per case for the next thirty days.Bargain Stores then contracts with local retailers based on the offer from Amalgamated.Ten days later,Amalgamated receives an offer from Dandy Stores,Inc.to purchase this same candy at a price of $75 per case.Can Amalgamated withdraw its offer to Bargain Stores?
A) Yes,the offer may be withdrawn since it lacks consideration.
B) No,as this is a firm offer.
C) Yes,the offer was simply an invitation to negotiate.
D) No,as this is only an option.
Firm Offer
In contract law, a proposal made by a seller to supply goods or services at a fixed price, which cannot be withdrawn for a certain period.
Consideration
Something of value exchanged between parties in a contract that induces them to enter into the agreement.
- Comprehend the notion of a firm offer and its importance within the realm of contract law.
Verified Answer
AC
Anirudh Christopher AnandMay 27, 2024
Final Answer :
B
Explanation :
Once a firm offer is made, it cannot be withdrawn for the period of time specified in the offer. In this case, Amalgamated Sales, Inc. made a firm offer to Bargain Stores, Inc. to sell candy at $50 per case for the next thirty days. Since Bargain Stores then contracted with local retailers based on this offer, it is considered a firm offer and cannot be withdrawn by Amalgamated.
Learning Objectives
- Comprehend the notion of a firm offer and its importance within the realm of contract law.