Under the UCC, what is required for a merchant's firm offer to keep the offer open?

Under the UCC, what is required for a merchant's firm offer to keep the offer open?

• A. It must be a signed written promise to keep the offer open.
• B. It can be orally promised and still be irrevocable for three months.
• C. It lasts for any duration without limit.
• D. It requires consideration to be irrevocable.

Answer: (A)

Under the UCC, a firm offer is created when a merchant makes a written, signed promise to hold the offer open. That written, signed assurance by a merchant makes the offer irrevocable for the time stated, up to a maximum of three months if no longer specified. No consideration is needed to make this irrevocability effective. So the essential requirement is a signed written promise by a merchant to keep the offer open, which is exactly what makes the offer irrevocable. An oral promise isn’t enough, and the period cannot be indefinite—there’s a 3-month cap unless the writing specifies a shorter period. Also, unlike typical contract rules, firm offers do not require consideration to be irrevocable.

Under the UCC, a firm offer is created when a merchant makes a written, signed promise to hold the offer open. That written, signed assurance by a merchant makes the offer irrevocable for the time stated, up to a maximum of three months if no longer specified. No consideration is needed to make this irrevocability effective.

So the essential requirement is a signed written promise by a merchant to keep the offer open, which is exactly what makes the offer irrevocable. An oral promise isn’t enough, and the period cannot be indefinite—there’s a 3-month cap unless the writing specifies a shorter period. Also, unlike typical contract rules, firm offers do not require consideration to be irrevocable.