BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A counter offer results in rejection of the original offer and creation of a new offer. Once a counter offer is made by the original offeree, he cannot subsequently accept the original offer, since the original offer stands revoked.

Detailed explanation-2: -REVOCATION. Revocation means an offer is withdrawn by the offerer. The general rule was established in Payne v Cave [1] that an offer can be revoked at any time before acceptance takes place. However, the revocation must be communicated effectively directly or indirectly to the offeree before acceptance [2] .

Detailed explanation-3: -Rejection is when an offeree says, “No” to the offer. The offer then dies. A counteroffer is when the offeree responds to the offer with an offer of her own.

Detailed explanation-4: -If an offeree clearly rejects the offer, the offer is said to be terminated. When an offeree changes the offeror’s terms in important ways, the offeree makes a counteroffer.

Detailed explanation-5: -(2) Rejection by the offeree The right of acceptance can also be terminated by the offeree’s rejection of the offer. If the offeree rejects the offer, his power of acceptance is terminated even if the power of acceptance would not have otherwise lapsed.