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Questions and Answers
What does UCC 2-205(1) describe?
What does UCC 2-205(1) describe?
What is the maximum period of irrevocability under UCC 2-205(2)?
What is the maximum period of irrevocability under UCC 2-205(2)?
Three months
Under UCC 2-205(3), any term of assurance on a form supplied by the offeree must be signed by the _______
Under UCC 2-205(3), any term of assurance on a form supplied by the offeree must be signed by the _______
offeror
What defines a general rule merchant?
What defines a general rule merchant?
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What is a business practice merchant?
What is a business practice merchant?
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What is meant by 'merchant by attribution'?
What is meant by 'merchant by attribution'?
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What do 'goods' refer to under the general rule?
What do 'goods' refer to under the general rule?
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Which of the following are considered as goods under UCC?
Which of the following are considered as goods under UCC?
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What does 'signed' mean in the context of UCC?
What does 'signed' mean in the context of UCC?
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What is included in the definition of 'writing' under UCC?
What is included in the definition of 'writing' under UCC?
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What does it mean to give assurance in the context of UCC?
What does it mean to give assurance in the context of UCC?
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Does an offer that states, 'We are pleased to offer goods at quoted prices,' give assurance?
Does an offer that states, 'We are pleased to offer goods at quoted prices,' give assurance?
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Who must the offeror be to ensure the firm offer remains open?
Who must the offeror be to ensure the firm offer remains open?
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To last longer than three months, the parties must either renew the firm offer or create a _______ contract.
To last longer than three months, the parties must either renew the firm offer or create a _______ contract.
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Does an offer become revocable after the time expires?
Does an offer become revocable after the time expires?
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Study Notes
UCC §2-205 Firm Offer Overview
- UCC 2-205(1) establishes that a signed offer by a merchant to buy/sell goods is irrevocable for lack of consideration if it assures that it will remain open.
- UCC 2-205(2) specifies that the offer must be held open for a reasonable time, but cannot exceed three months.
- UCC 2-205(3) requires that any assurance term on a form provided by the offeree be signed by the offeror.
Types of Merchants
- General Rule Merchant: An individual engaged in the trade of goods of a specific kind.
- Business Practice Merchant: A person who presents themselves as possessing knowledge or skills relevant to the goods involved in the transaction through their occupation.
- Merchant by Attribution: Refers to individuals whose knowledge or skills can be attributed due to their employment of agents or brokers with expertise in the relevant trade.
Definition of Goods
- Goods encompass all movable items identified for a sale contract.
- Specific categories include unborn young of animals, growing crops, and things attached to real property as defined within the section regarding goods.
Key Definitions
- Signed: Refers to any symbol executed with the intent to accept or adopt a writing.
- Writing: Encompasses printed text, typewritten documents, or any other tangible representation of information.
- Gives Assurance: Indicates that the offer is firm and remains open for a specified duration, establishing an option contract.
- Does Not Give Assurance: A phrase such as "we are pleased to offer goods" does not constitute an assurance of an open offer.
Offeror Requirements and Conditions
- The offeror must be a merchant; otherwise, the purpose behind holding the option open is unclear.
- To extend a firm offer beyond three months, the parties can either renew the firm offer or establish a traditional option contract.
Time Expiration and Revocability
- The approach to revocation of an offer after the specified time period is dependent on jurisdictional law. It's advisable to integrate terms in the offer clarifying the status after expiration.
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Description
Test your knowledge of UCC §2-205 with these flashcards focused on the firm offer rule. Each card presents a specific section of the law, including definitions and conditions. Ideal for law students and anyone studying commercial transactions.
