BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Options-If the offeree gives the offeror something of value in return for a promise to keep the offer open, this agreement is itself a binding contract. It is called an option. Firm Offers – A special rule applies to merchants (those who regularly deal in the goods bought or sold).

Detailed explanation-2: -A proposal by an offeror to do something, provided the offeree does something in return. In making a counteroffer, the offeree says in legal effect, “I refuse your offer; here is my proposal.” The counteroffer terminates the original offer.

Detailed explanation-3: -(1) A counteroffer is an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer.

Detailed explanation-4: -A conditional or qualified acceptance is an acceptance that adds to, or changes, the terms of the original offer. This is essentially a counteroffer. A conditional or qualified acceptance generally terminates the offeree’s power of acceptance.

Detailed explanation-5: -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 Revocation means an offer is withdrawn by the offerer.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] .