In short
Under the rules for sales of goods, a merchant's signed written offer that says it will be held open can't be revoked, even without consideration, for the stated time, or a reasonable time if none is stated, but no longer than 3 months.
Key takeaways
- Only merchants can make firm offers.
- Under common law, an offer can be revoked any time before acceptance unless consideration is paid for an option.
- An option paid for can last longer than 3 months.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
On June 1, a merchant seller mails an offer to sell goods. On June 3, the seller mails a revocation. On June 4, the buyer mails an acceptance. On June 5, the buyer receives the revocation. Is there a contract?