Asked by hannah burkle on May 22, 2024
Verified
Which of the following is true of a firm offer?
A) It occurs when parties intend to be bound by a contract,but fail to mention the price.
B) It occurs when a seller agrees to sell all it can produce to a particular buyer.
C) It occurs when a merchant promises to hold an offer open without any consideration.
D) It occurs when a buyer agrees to buy all its requirements from a particular seller.
Firm Offer
In contract law, an offer that is expressly made irrevocable for a specified period of time by the offeror.
Merchant
An individual or company involved in wholesale or retail trade, especially one dealing with goods, services, or commodities for profit.
Consideration
Consideration in legal terms refers to the value, which could be a benefit or a sacrifice, that parties exchange in a contractual agreement, essential for the contract's validity.
- Identify and describe the characteristics of a firm offer.
Verified Answer
KP
Keeley ParkerMay 28, 2024
Final Answer :
C
Explanation :
A firm offer occurs under the Uniform Commercial Code (UCC) when a merchant offers to sell goods and promises in writing to keep the offer open without requiring any consideration (such as a deposit or fee) in return. This is specifically applicable to merchants and is designed to provide some stability in commercial transactions by allowing buyers to rely on an offer's availability for a certain period of time.
Learning Objectives
- Identify and describe the characteristics of a firm offer.