Texas Firm Offer for Sales Agreement by Merchant

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Description

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.

Such an offer is irrevocable even in the absence of consideration. If no time is stated, it is irrevocable for a reasonable time, but in no event may a period of irrevocability exceed three months. Any such term of assurance in a form supplied by the offeree must be separately signed by the offeror.

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.

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.

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.

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, ...

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.

Section 601.052 - Notice of Consumer's Right to Cancel Required (a) A merchant must provide a consumer with a complete receipt or copy of a contract pertaining to the consumer transaction at the time of its execution.

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Texas Firm Offer for Sales Agreement by Merchant