Under a firm offer governed by the UCC, a signed offer to keep an offer open for seven days is revocable only if the offeree delays in accepting. If the signature on the offer is only initials, is the offer still binding for seven days?

• A. Yes, because initials by an authorized signer can count as a signature.
• B. No, because a full handwritten signature is required.
• C. Yes, but only if the offer was communicated by email.
• D. No, unless the offer is supported by new consideration.

Answer: (A)

Under the UCC, a merchant’s promise in a signed writing to keep an offer open is not revocable for the period stated, up to a maximum of three months, without any need for new consideration. The crucial requirement is that the writing be signed by the offeror, but the form of the signature can be flexible—the signature just has to indicate an intent to authenticate and bind the signer.

If the offer to keep the price and terms open for seven days is signed by initials from someone authorized to sign, those initials can satisfy the signature requirement. As long as the signer had authority to bind the offeror, the initials count as a signed agreement to keep the offer open, so the offer remains irrevocable for the seven-day period.

Thus, even though the signature is only initials, the firm-offer protection applies, and the offer is binding for seven days. The other options misstate the requirements: a full handwritten signature isn’t mandatory; consideration isn’t needed to create a firm offer under the UCC; and the mode of communication (such as email) isn’t relevant to the signature requirement.