Legal Definitions - firm offer

Definition: A firm offer is a type of offer that cannot be revoked or withdrawn under Article 2 of the Uniform Commercial Code. In a sale of goods, if the seller is a merchant and promises in writing to keep an offer open, a firm offer is created. This offer will only last for the period of time stated in the offer. If no time period is stated, the offer will stay open for a maximum of three months.

Example 1: A car dealership promises in writing to keep an offer to sell a car to a customer open for two weeks. This is a firm offer, and the dealership cannot revoke or withdraw the offer during that two-week period.

Example 2: A clothing manufacturer sends a written offer to a retailer to purchase a certain amount of clothing at a specific price. The offer states that it will remain open for one month. This is a firm offer, and the retailer can accept the offer at any time during that one-month period.

These examples illustrate how a firm offer works in a commercial transaction. Once a firm offer is made, the offeror cannot change their mind and revoke the offer. This provides certainty and stability for the offeree, who can rely on the offer being available for a certain period of time.