Under the UCC, when is a firm offer created?

Under the UCC, when is a firm offer created?

• A. A merchant signs a written offer promising to keep it open for a stated duration, without consideration
• B. Any offer with a time limit
• C. A counteroffer with new terms
• D. An advertisement with no price

Answer: (A)

Under the UCC, a firm offer is an irrevocable promise by a merchant to keep an offer open for a stated period (or for a reasonable time if no period is stated), without the need for consideration. This requires a written, signed assurance from the merchant that the offer will be held open. When a merchant signs a written offer and promises to keep it open for a stated duration, that offer cannot be revoked during that time, up to a maximum of three months. This is why the scenario described fits a firm offer: a merchant signs a written offer promising to hold it open for a set period, without requiring additional consideration. The other options don’t fit because a time limit by itself isn’t enough to create a firm offer unless the requirements of writing, signature, and merchant status with a promise to keep it open are present; a counteroffer terminates the original offer; and an advertisement with no price is generally not an enforceable offer unless it clearly satisfies the firm-offer criteria, which is not indicated here.

Under the UCC, a firm offer is an irrevocable promise by a merchant to keep an offer open for a stated period (or for a reasonable time if no period is stated), without the need for consideration. This requires a written, signed assurance from the merchant that the offer will be held open. When a merchant signs a written offer and promises to keep it open for a stated duration, that offer cannot be revoked during that time, up to a maximum of three months. This is why the scenario described fits a firm offer: a merchant signs a written offer promising to hold it open for a set period, without requiring additional consideration.

The other options don’t fit because a time limit by itself isn’t enough to create a firm offer unless the requirements of writing, signature, and merchant status with a promise to keep it open are present; a counteroffer terminates the original offer; and an advertisement with no price is generally not an enforceable offer unless it clearly satisfies the firm-offer criteria, which is not indicated here.