New York Firm Offer for Sales Agreement by Merchant

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The Uniform Commercial Code (UCC) has been adopted in whole or in part by the legislatures of all 50 states. In most instances, the UCC treats all buyers and sellers alike. In some cases, it treats merchants differently than it does the occasional or casual buyer or seller. The UCC recognizes that the merchant is experienced and has a special knowledge of the relevant commercial practices.


Contract law as to offers is applicable to a sales contract, with the following exception. A firm offer by a merchant cannot be revoked if the offer:


" expresses an intention that it will not be revoked,

" is in a writing, and

" is signed by the merchant.

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FAQ

Which of the following is required for a merchant's firm offer under Article 2? A written assurance signed by the offeror. Under 2-205, a merchant's firm offer arises when a merchant offers to sell goods in a signed writing and the writing gives assurances that the offer will be held open.

In the United States, an exception is the merchant firm offer rule set out in Uniform Commercial Code - § 2-205, which states that an offer is firm and irrevocable if it is an offer to buy or sell goods made by a merchant and it is in writing and signed by the offeror.

An (1)offer by a merchant to buy or sell goods in a(2) signed writing (3) which by its terms gives assurance that it will be held open is not revocable, for lack of consideration during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months, ...

N. in contract law, an offer (usually in writing) which states it may not be withdrawn, revoked or amended for a specific period of time. If the offer is accepted without a change during that period, there is a firm, enforceable contract.

The terms of the offer must clearly indicate that an act is required for acceptance. Example: John tells Dan that he will pay Dan $100 if Dan paints his car, and that Dan should show acceptance of the offer by the act of painting the car. Dan accepts by painting the car.

A firm offer is an irrevocable offer to contract under Article 2 of the Uniform Commercial Code In a sale of goods, if the seller is a merchant under the definition of a merchant in §2-104, and promises in signed writing to keep an offer open, a firm offer is created.

An example of the firm offer rule could be a merchant agreeing to sell one hundred units of a certain good at a fixed price of $50 for a period of 60 days. Time limits on firm offers can be extended by offering a new offer or agreeing to an option contract.

Under the Merchant's Firm Offer rule in Article 2, a promise to keep an offer open will be enforceable without the payment of consideration when a merchant offers to buy or sell goods in a signed writing that gives assurances that the contract will be held open for a specified period of time.

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New York Firm Offer for Sales Agreement by Merchant