Article 2 — Sales · Section 2-205
UCC § 2-205 addresses the firm offer rule, establishing that an offer by a merchant can be irrevocable under certain conditions.
Source: U.C.C. § 2-205
An offer by a merchant to buy or sell goods shall be irrevocable during the time stated in the offer or, if no time is stated, for a reasonable time, but in no event may such period of irrevocability exceed three months. Such an offer must be in writing and signed by the offeror.
UCC § 2-205 allows a merchant's offer to remain open for a certain period without the possibility of being revoked. This applies only if the offer is written and signed, and it generally cannot last longer than three months.
A person or entity that regularly deals in goods of the kind or otherwise holds themselves out as having knowledge or skill unique to the practices or goods involved in the transaction.
A type of offer that cannot be revoked for the time period stated in the offer, guaranteed when made by a merchant and in written form.
Example 1
A shoe manufacturer submits a written offer to a retailer to supply shoes at a specific price, stating that the offer will be held open for three months. The retailer cannot claim price changes during that period.
Example 2
A bakery offers to sell bread to a grocery store for the next two months in a signed document without the option to revoke. The bakery must honor that price for the duration of the offer.