A Seller sends a letter offering to sell 500 chairs at 50 each, stating 'This offer will remain open for 60 days.' 30 days later, the Seller revokes. Can the Buyer still accept?

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UCC Contracts QUESTION #5846

Question 1

A Seller sends a letter offering to sell 500 chairs at $50 each, stating 'This offer will remain open for 60 days.' 30 days later, the Seller revokes. Can the Buyer still accept?

No, because there was no consideration for the promise to keep the offer open.
Yes, because this is a 'Firm Offer' by a merchant.✔️
No, unless the Buyer already started performance.
Yes, because all UCC offers are irrevocable for 90 days.

Correct Answer Explanation

Under UCC §2-205, a signed writing by a merchant promising to keep an offer open is irrevocable for the time stated (not to exceed 3 months) even without consideration.

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