BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -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-2: -Upon accepting, a contract is created, which can be enforced against both the parties. Once a counteroffer is accepted, any previous offers are voided, and the entity involved in that offer is no more legally responsible for it.
Detailed explanation-3: -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-4: -When a counter offer is made then the original offer will cancelled. That si original offer is lapsed.