Edwin,Marketing VP of Amalgamated Sales,Inc. ,writes a letter dated August 1 to Bargain Stores,Inc.offering to sell candy to Bargain Stores at $50 per case for the next thirty days.Bargain Stores then contracts with local retailers based on the offer from Amalgamated.Ten days later,Amalgamated receives an offer from Dandy Stores,Inc.to purchase this same candy at a price of $75 per case.Can Amalgamated withdraw its offer to Bargain Stores?
A)Yes,the offer may be withdrawn since it lacks consideration.
B)No,as this is a firm offer.
C)Yes,the offer was simply an invitation to negotiate.
D)No,as this is only an option.

Question

Quizplus · Accepted Answer

Once a firm offer is made, it cannot be withdrawn for the period of time specified in the offer. In this case, Amalgamated Sales, Inc. made a firm offer to Bargain Stores, Inc. to sell candy at $50 per case for the next thirty days. Since Bargain Stores then contracted with local retailers based on this offer, it is considered a firm offer and cannot be withdrawn by Amalgamated.