Firm Offer Law and Legal Definition
Firm offer is an offer in writing where the offer cannot be revoked, withdrawn or amended for a specific period of time. This brings in a slight variation to the usual principle of contract law. Usually in any contract an offer is valid when it is being accepted and until then there is no legal consequence even if the offer is later withdrawn. By in the case of firm offer such offer cannot be revoked for a specific period of time.
Following is an example of a state statute (Arkansas) defining firm offer:
A.C.A. § 4-2-205 defines firm offer as an offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open is not revocable, for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three (3) months; but any such term of assurance on a form supplied by the offeree must be separately signed by the offeror.