MUTUAL ASSENT - 2

MUTUAL ASSENT - 2 - MUTUAL ASSENT - 2 IRREVOCABLE OFFERS...

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Unformatted text preview: MUTUAL ASSENT - 2 IRREVOCABLE OFFERS Issue: When is a promise not to revoke an offer binding? Options Common law rule An offer is revocable unless the offeror received consideration in exchange for the promise to keep offer open Option? 1. Conversation: Will you give me a week to decide? Yes, I promise. 2. Conversation: Ill give you $5 if you keep the offer open for a week. 3. Written offer. Oral promise to keep the offer open for one week. Options (cont.) Note: Offeree not bound to accept Distinguish down payment, layaway, etc. UCC 2-205 2-205 Firm Offers An offer by a merchant to buy or sell goods in a signed writing 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; but any such term of assurance on a form supplied by the offeree must be separately signed by the offeror. UCC 2-205 (cont.) Applies to offers by merchants, to buy or sell goods (status of other party irrelevant) Must be in writing and signed by the offeror (merchant) Must give assurance that will offer be held open (promise) e.g. firm offer will remain open will not be withdrawn...
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MUTUAL ASSENT - 2 - MUTUAL ASSENT - 2 IRREVOCABLE OFFERS...

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