Discussions in Contracts: Option Contracts and Firm Offers Podcast
The topic of this podcast is how to determine whether the offeror can terminate the offer or whether the offer is irrevocable. Recall that a contract is a promise or set of promises which the law enforces. Ordinarily, the manifestation of mutual assent takes place by virtue of an offer by the offeror, which is then followed by an acceptance by the offeree. Typically, an offeror can revoke an offer freely at any time prior to acceptance, but at times an offer is irrevocable. An offer may be found to be irrevocable in four situations, discussed in this podcast. This podcast includes several examples explaining when an offer may be found to be irrevocable. At the conclusion of this podcast you should be able to (1) identify the four common situations in which an offer will be irrevocable: the formation of an option contract; the formation of an option contract through part performance of an offer for a unilateral contract; a firm offer by statute, such as UCC § 2-205; and an option contract arising because of detrimental reliance; (2) evaluate factual situations to determine whether one of these situations will result in an irrevocable offer.