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. It is only if acceptance is given to the new offer that a contract shall be created.

Detailed explanation-2: -If an offeree alters a term in the original offer and sends it back to the original offeror, the result is a counteroffer.

Detailed explanation-3: -When an offeree changes the offeror’s terms in important ways, the offeree makes a counteroffer.

Detailed explanation-4: -A counteroffer functions as both a rejection of an offer to enter into a contract, as well as a new offer that materially changes the terms of the original offer. Because a counteroffer serves as a rejection, it completely voids the original offer. Thus, the original offer can no longer be accepted.

Detailed explanation-5: -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.