MBE Rules · Contracts
Firm offers (UCC §2-205)
UCC §2-205
The rule
Between merchants, a signed written offer to buy or sell goods that gives assurance it will be held open is irrevocable for the stated time, or a reasonable time if none stated. Maximum period of irrevocability is 3 months, even if the offer states longer. No consideration required.
In plain English
If a merchant makes a written promise to keep an offer open for a certain time, they can't back out early, even without payment, but this can't exceed three months.
Worked example
A car dealer writes to a buyer promising to hold a car offer open for two months. The dealer can't revoke this offer for those two months, even if the buyer doesn't pay anything to keep it open.
Memory hook
Firm Offer: Merchant's promise, no take-backs! Signed, written, and no consideration needed.
The trap
Students think: Any offer can be firm. Wrong, because it must be between merchants and in writing. The actual test is a signed, written offer with assurance.
How examiners test it
The MBE loves: a merchant's written offer with a promise to keep it open for more than 3 months. Trap: students forget the maximum 3-month limit for irrevocability.
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