| If the sale is for goods or a
merchant is involved, then it may fall under
Uniform Commercial Code guidelines. These
are much more restrictive on the business than on
the individual, your company's purchase agreements
should be tailored to best serve your needs, not a
standard form.
One example of a rule that
differs depending on if the parties are merchants
or consumers is §2-205. It states:
(a) 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 months; but any
such term of assurance on a form supplied by the
offeree must be separately signed by the offeror.
(b) Notwithstanding subdivision (a), when a
merchant renders an offer, oral or written, to
supply goods to a contractor licensed pursuant to
the provisions of Chapter 9 (commencing with
Section7000) of Division 3 of the Business and
Professions Code or a similar contractor's
licensing law of another state, and the merchant
has actual or imputed knowledge that the
contractor is so licensed, and that the offer will
be relied upon by the contractor in the submission
of its bid for a construction contract with a
third party, the offer relied upon shall be
irrevocable, notwithstanding lack of
consideration, for 10 days after the awarding of
the contract to the prime contractor, but in no
event for more than 90 days after the date the bid
or offer was rendered by the merchant; except that
an oral bid or offer, when for a price of two
thousand five hundred dollars ($2,500) or more,
shall be confirmed in writing by the contractor or
his or her agent within 48 hours after it is
rendered. Failure by the contractor to confirm
such offer in writing shall release the merchant
from his or her offer. Nothing in this subdivision
shall prevent a merchant from providing that the
bid or offer will be held open for less than the
time provided for herein.
(From the CA
Commercial Code)
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| Corporate Protection
Services can help you strengthen your business
through improved business agreements. We
will review your current agreements, if any, and
create a set of standard contracts for use in
your day to day operations.
We will assist you in
streamlining your paper flow. We can even
help eliminate your paper flow by assisting your
company in becoming virtually paperless, thus
saving time and money in employee costs and
storage fees.
We will assist in the
design and structure of company agreements
specific to the needs and goals of your business
and then help you manage and update your
agreements on an ongoing basis including annual,
semi-annual or quarterly reviews, based on your
company's needs.
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