What is the Firm Offer Rule? (2024)

FAQs

What is the Firm Offer Rule? ›

A firm offer is an offer that will remain open for a certain period or until a certain time or occurrence of a certain event, during which it is incapable of being revoked. As a general rule, all offers are revocable at any time prior to acceptance, even those offers that purport to be irrevocable on their face.

Example 1: A car dealership promises in writing to keep an offer to sell a car to a customer open for two weeks. This is a firm offer, and the dealership cannot revoke or withdraw the offer during that two-week period.

A firm offer is an irrevocable offer to contract under Article 2 of the Uniform Commercial Code In a sale of goods, if the seller is a merchant under the definition of a merchant in §2-104, and promises in signed writing to keep an offer open, a firm offer is created.

noun. : a binding written offer to buy or sell that cannot be revoked for a stipulated period of time or for a reasonable time that in no event exceeds three months.

This section is intended to apply to current “firm” offers and not to long term options, and an outside time limit of three months during which such offers remain irrevocable has been set. The three month period during which firm offers remain irrevocable under this section need not be stated by days or by date.

A firm offer is an offer that will remain open for a certain period or until a certain time or occurrence of a certain event, during which it is incapable of being revoked. As a general rule, all offers are revocable at any time prior to acceptance, even those offers that purport to be irrevocable on their face.

Like an option contract, the Firm Offer Rule is a type of irrevocable offer contract, meaning the person offering the contract cannot revoke it for a period of time.

You should contact your preferred university to ensure there are spaces on your chosen course and you meet the entry requirements. You should then contact your firm choice university to decline their offer. For more information, including deadlines for swapping your choices, visit UCAS.

In a competitive market brought on by the pandemic and low inventory of houses for sale, it was common for us to see real estate deals without any conditions and firm offers. A 100% firm offer means that the purchase is final, and the buyer can't back out of the deal.

Accept an offer and register online before the deadline stipulated in the firm offer letter. Should you not do so, the offer will be withdrawn, and the place will be offered to another applicant.

Is a firm offer negotiable? ›

A “firm offer” is commonly understood to be a definite and binding proposal to enter into a contract. The concept is that a party who makes a firm offer is agreeing that if the offer is accepted, then both parties will be bound by its terms and the offer may not then be withdrawn.

If the offer stays open for more than three months, it must be supported by a consideration which means there must be a formal agreement of some type. When the offer is considered a firm offer, it has only gone one way and has not yet been accepted.

A “firm offer" is an offer to buy or sell goods at a certain price that is guaranteed not to change for a certain period of time. Your customers may ask you to make a firm offer so they have certainty with respect to pricing for a fixed period of time. You may seek the same from your suppliers.

The decision to rescind a job offer must be permitted under applicable law. The following are examples of situations where an employer may wish to rescind a job offer: The candidate fails a legally required drug test. The company can no longer afford to hire a new employee due to budget cuts or financial instability.

Contrary to what most believe, an informal exchange of promises can still be binding and legally as valid as a written contract. A spoken contract is often called an “oral contract,” not a “verbal contract.” A verbal contract is simply a contract that uses words.

An example of the firm offer rule could be a merchant agreeing to sell one hundred units of a certain good at a fixed price of $50 for a period of 60 days. Time limits on firm offers can be extended by offering a new offer or agreeing to an option contract.

For example, if a merchant offers to sell a product to a customer and promises to keep the offer open for a week, the offer cannot be withdrawn during that week.

However, an offer is made and if another individual accepts the offer and performs, an enforceable contract exists. An example would be if A offers a reward of $100 to the person who finds and returns A's missing cat. If B finds and returns the cat to A, A would be bound to pay B the $100 reward.

A firm bid rule refers to an offer that a bidder makes that does not contain any stipulations that could prevent acceptance. The bid once made stays open until the purchasing director either accepts or rejects the bid.

An offeror should announce a firm intention to make an offer only after the most careful and responsible consideration and when the offeror has every reason to believe that it can and will continue to be able to implement the offer.