Legal Definitions - fire sale

Definition: A sale of merchandise at reduced prices because of fire or water damage. Any sale at greatly reduced prices, especially due to an emergency.

Examples:

• A store that has suffered fire or water damage may have a fire sale to get rid of the damaged goods at a reduced price.
• A business that is going bankrupt may have a fire sale to sell off its inventory quickly and at a lower price to pay off its debts.

These examples illustrate how a fire sale is a type of sale that happens when there is an emergency or a need to get rid of inventory quickly. The prices are usually lower than usual to attract buyers and generate revenue quickly.