Guam Firm Offer for Sales Agreement with Specification of Manner of Acceptance

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US-02325BG
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Description

The Uniform Commercial Code (UCC) has been adopted in whole or in part by the legislatures of all 50 states. In most instances, the UCC treats all buyers and sellers alike. In some cases, it treats merchants differently than it does the occasional or casual buyer or seller. The UCC recognizes that the merchant is experienced and has a special knowledge of the relevant commercial practices.


Contract law as to offers is applicable to a sales contract, with the following exception. A firm offer by a merchant cannot be revoked if the offer:


" expresses an intention that it will not be revoked,

" is in a writing, and

" is signed by the merchant.


Unless it is expressly specified that an offer to buy or sell goods must be accepted just as made, the offeree may accept an offer and at the same time propose an additional term. This is contrary to general contract law.

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FAQ

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.

What are the requirements of an effective acceptance? An effective acceptance must be made by the person or persons to whom the offer was made, match the terms in the offer, and be communicated to the offeror.

Valid acceptance is acceptance that is made by the specified offeree and that meets the conditions of mutual assent (both parties agree to the arrangement), adequate consideration (each party receives a benefit for the promised goods or services of the other party), capacity (both parties are legally capable of ...

Most offers require acceptance by either a promise (offers for a bilateral contract) or an act (offers for a unilateral contract). In some cases an offer is ambiguous as to which mode of acceptance is required. Sometimes this ambiguity does not matter because the offeree performs an act that doubles as a promise.

The meaning of offer and acceptance is the basis of a contract. To form a contract, there must be an offer made by one party which is, in turn, accepted by another party, and then, in most cases goods and/or services must be exchanged between the two.

1. Express acceptance. Express acceptance occurs when someone explicitly agrees, either verbally or in writing, to accept the offer you've made them. This one's nice and straightforward ? it's when you clearly say ?yes? to an offer, exactly as it is.

Principle: When an offer is accepted by a person to whom it is made, it becomes a promise, But the Promise will become legally binding only when the acceptance of the offer is unconditional. Facts: Ram makes an offer to sell his house to shyam for Rs. 50 lacs.

What are the three main principles of offer and acceptance in contract law? A meeting of minds or mutual agreement (consensus ad idem), clear intention to create legal relations, and certainty in the terms of the offer and acceptance.

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Guam Firm Offer for Sales Agreement with Specification of Manner of Acceptance