Firm Offer

In one sentence

A written promise by a merchant to keep an offer open for a set time, which can't be revoked.

Plain English

Normally, someone can revoke (take back) an offer anytime before it's accepted. But a firm offer is different. If a merchant puts their offer in writing and promises to hold it open for a certain period, they can't revoke it during that time. This rule protects the other party, who knows the offer will stay available. Firm offers are mostly used in sales of goods between merchants.

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Example

A supplier sends a written quote saying, "This price of $5 per unit is firm for 30 days." The supplier can't revoke that offer during the 30 days, even if the market price drops. The buyer has 30 days to decide whether to accept.

Used in a sentence

“The contractor's firm offer to complete the project for $75,000 remained open for 60 days as promised.”

Related terms

Revocation

An offeror's withdrawal of an offer before it's accepted, ending the power to form a contract.

Option

A contract giving one party the right to buy, sell, or do something at a set price within a time frame.

Contract Formation

The process by which parties create a legally binding agreement.

Offeror

The person who makes an offer to enter into a contract.

Lapse of Offer

An offer that expires because too much time has passed or a condition fails.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.