Asked by Imuetiyan Eweka on Jul 29, 2024
Verified
E-Systems,Inc. ,a manufacturer of computer chips,offers to sell 1,000 chips to Swell Computers for $2,000 in a signed memo that states the offer is good for one year.Four months later,E-Systems revokes the offer,having never received an acceptance from Swell.After receiving the revocation,Swell wants to accept E-Systems's offer.What is the result?
Signed Memo
A written document that has been signed by the author or parties involved, often serving as a record or agreement.
Revocation
The act of withdrawing, cancelling, or reversing a decision, offer, or statement.
Manufacturer
A manufacturer is a person or company that makes goods for sale, often involving the use of raw materials, machinery, and labor to produce finished products.
- Detail the conditions that enable or restrict an offeror's ability to withdraw an offer.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
E-Systems offer was a firm offer under Article 2 of the UCC because it is a merchant,and the offer was held open for a certain period of time in writing.A firm offer does not require consideration.However,a firm offer is irrevocable for three months at most.Therefore,although E-Systems offered to hold its offer open for a year,it is not obligated to do so beyond three months.Having not received an acceptance from Swell before that time,E-Systems was free to revoke its offer to Swell.
Learning Objectives
- Detail the conditions that enable or restrict an offeror's ability to withdraw an offer.