Is a firm offer a contract once it is accepted?

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Study for the Chartering and Brokerage Test. Master ship chartering and brokerage concepts with multiple choice questions and detailed explanations. Get ready to excel!

Multiple Choice

Is a firm offer a contract once it is accepted?

Explanation:
Under the UCC, a firm offer is a merchant’s written promise to keep an offer open and makes that offer irrevocable for the time stated (or up to three months if no period is specified) without needing consideration. The firm offer by itself is not the contract. When acceptance happens during that irrevocable period, a binding contract is formed on the terms of the offer. So, yes—once the firm offer is accepted within the open period, a contract exists. Outside that period, the offer can be revoked.

Under the UCC, a firm offer is a merchant’s written promise to keep an offer open and makes that offer irrevocable for the time stated (or up to three months if no period is specified) without needing consideration. The firm offer by itself is not the contract. When acceptance happens during that irrevocable period, a binding contract is formed on the terms of the offer. So, yes—once the firm offer is accepted within the open period, a contract exists. Outside that period, the offer can be revoked.

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