What does the Merchant Firm Offer Rule stipulate?

The Merchant Firm Offer Rule is an important aspect of contract law that specifically relates to offers made by merchants. This rule stipulates that if a merchant makes an offer in a signed writing that assures it will remain open for a specified period of time, that offer is irrevocable during that time frame, regardless of whether the offeree provides consideration to keep it open. This rule is designed to promote certainty and reliability in commercial transactions, particularly where merchants are involved, as they often require some degree of predictability in their dealings.

Therefore, the correct interpretation of the Merchant Firm Offer Rule aligns precisely with the concept that an offer must be in a signed writing to be considered irrevocable. This is particularly relevant in the Uniform Commercial Code (UCC), which governs commercial transactions and highlights the importance of written documentation in assuring the parties involved that an offer will remain valid for a determined period.

The other options do not align with the principles of the Merchant Firm Offer Rule. For instance, offers from non-merchants can indeed be revoked at any time unless there is an underlying consideration or legal framework establishing a binding commitment. The idea that merchant offers must be verbal or that they can be withdrawn at any time also does not accurately capture the essence of how this rule operates under