Revocation of an Offer

Question 1

What is a merchant’s firm offer?

Answer 1

A merchant’s firm offer is a type of irrevocable offer for the purchase or sale of goods. Only a merchant can make a merchant’s firm offer.

The offer must be signed by the merchant and contain a promise to keep the offer open for a period of time.

A merchant’s firm offer cannot stay open for more than 90 days, regardless of the time promised.

*Just because a merchant’s firm offer becomes revocable does not mean that it has been revoked!

Question 2

When are option contracts enforceable?

Answer 2

1. When there is consideration to keep the option open.
2. When there is a promissory estoppel claim (i.e. in construction bids)

• offer
• reasonable expectation of inducing reliance on the offer prior to acceptance
• reasonable reliance on the offer
• substantial detriment and injustice if offer not enforced.