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LSDefine
Simple English definitions for legal terms
merchant's firm offer
Read a random definition: inter vivos trust
A quick definition of merchant's firm offer:
A merchant's firm offer is a promise made by a seller to keep an offer open for a certain period of time. During this time, the seller cannot withdraw the offer without facing legal consequences. This type of offer is often used in business transactions and can be enforced even without consideration. It is important to note that an offer is a promise to do or refrain from doing something, and once accepted, it creates a binding contract between the parties involved.
A more thorough explanation:
A merchant's firm offer is an offer made by a merchant that cannot be withdrawn for a specified period. This type of offer is also known as an irrevocable offer. It is a promise to keep the offer open for a certain amount of time, during which the offer cannot be withdrawn without the offeror becoming liable for breach of contract.
For example, if a merchant offers to sell a product to a customer and promises to keep the offer open for a week, the offer cannot be withdrawn during that week. If the merchant does withdraw the offer, they could be sued for breach of contract.
Under the Uniform Commercial Code (UCC), a merchant's signed, written offer giving assurances that it will be held open is irrevocable for the stated period, even if there is no consideration. This means that the offeror cannot withdraw the offer during the specified time period, even if they do not receive anything in return.
Overall, a merchant's firm offer is a binding promise that cannot be withdrawn for a specified period, and it is commonly used in commercial transactions.