BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Under Article 2 of the Uniform Commercial Code, in a sale of goods, if the seller is a merchant under the definition of a merchant in Article 2, and in a signed writing promises to keep an offer open, this creates a firm offer which is irrevocable.

Detailed explanation-2: -Option Contract: A contract made to keep an offer open for a specified period so that the offeror cannot revoke the offer during that period. The promise to keep the offer open is supported by consideration.

Detailed explanation-3: -A firm offer is a contract that Party A will buy from Party B within a given time frame. An option contract says that in return for a deposit, Party A may buy from Party B: If Party A walks away from the deal instead, the deposit is forfeited.

Detailed explanation-4: -Unlike an option contract for instance, the Firm Offer Rule is governed by the Uniform Commercial Code (UCC) and applies only to merchants who deal in the sale of goods. This is an important rule to be aware of if you are considered a merchant under the auspices of the UCC.