Joshua,a merchant,promises in a signed writing to Pedro,a consumer,to hold an offer to sell goods open for five months without Pedro giving consideration in exchange.However,Joshua sells the goods to another consumer and Pedro sues him for breach of contract.Which of the following is true of this case?
A)Joshua is not bound by the contract,since firm offers cannot exceed three months.
B)Since Joshua is a merchant and is bound by a firm offer made to Pedro,he has breached contract.
C)The UCC will not enforce this contract as a firm offer as both parties are not merchants.
D)Joshua is bound by this offer only if a five month offer is customary for this type of good.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), a firm offer made by a merchant to buy or sell goods in a signed writing is irrevocable for the time stated, but cannot exceed three months without consideration. Since Joshua promised to hold the offer open for five months without consideration, it exceeds the three-month limit and is not enforceable as a firm offer.

Joshua,a Merchant,promises in a Signed Writing to Pedro,a Consumer,to Hold