Which statement describes a firm offer under the UCC?

Which statement describes a firm offer under the UCC?

• A. Promises to keep an offer open, in signed writing, made by a merchant, for a time not to exceed three months
• B. It can be oral and lasts indefinitely
• C. It requires consideration to keep open
• D. It applies to services as well as goods

Answer: (A)

A firm offer under the UCC is a merchant’s promise, in signed writing, to keep an offer open for a stated period, but not longer than three months, without needing consideration. This creates an irrevocable offer during that time, giving the offeree reliable certainty about the offer’s availability. The key points are: it must be about goods, it must be made by a merchant, it must be in a signed writing, and it must specify a time not to exceed three months. If any element is missing—no signed writing by a merchant, no time stated, or the offer concerns services—the firm offer rule doesn’t apply and the offer can be revoked. It cannot last indefinitely, and it does not require consideration to keep open.

A firm offer under the UCC is a merchant’s promise, in signed writing, to keep an offer open for a stated period, but not longer than three months, without needing consideration. This creates an irrevocable offer during that time, giving the offeree reliable certainty about the offer’s availability. The key points are: it must be about goods, it must be made by a merchant, it must be in a signed writing, and it must specify a time not to exceed three months. If any element is missing—no signed writing by a merchant, no time stated, or the offer concerns services—the firm offer rule doesn’t apply and the offer can be revoked. It cannot last indefinitely, and it does not require consideration to keep open.