REG – Question #1608

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  • #197477
    Anonymous
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    The president of Deal Corp. wrote to Boyd, offering to sell the Deal factory for $300,000. The offer was sent by Deal on June 5 and was received by Boyd on June 9. The offer stated that it would remain open until December 20. The offer:

    A.constitutes an enforceable option.

    B.may be revoked by Deal any time prior to Boyd’s acceptance.

    C.is a firm offer under the U.C.C. but will be irrevocable for only three months.

    D.is a firm offer under the U.C.C. because it is in writing.

    Per key – the answer is B (“To create a contract, the offer must be accepted before a termination of the contract. Under common law, an offer can be revoked any time before its acceptance.”)

    Why does this not qualify as firm offer?

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