Arcand Industries has offered to sell a piece of equipment to XYZ Inc for $100,000 and has promised to keep its offer open until the last day of the month.What is Arcand's legal position in this situation?

Question

Quizplus · Accepted Answer

CArcand's promise to keep the offer open until the last day of the month creates an option contract, assuming consideration for this promise, making them legally bound to keep the offer open (C). However, without consideration specifically for keeping the offer open, general contract principles allow an offeror to revoke an offer at any time before acceptance, even if they've promised to keep the offer open, unless it's a firm offer under the UCC for the sale of goods, which requires no consideration to be irrevocable for a limited time (B). Since the question doesn't specify the nature of the equipment or if there was consideration for keeping the offer open, both B and C could apply depending on those details.

Arcand Industries Has Offered to Sell a Piece of Equipment