Multiple choice

A enquires from B, “Will you purchase my cow for $ 100?” B replies, “I shall purchase your cow for $100 provided you purchase my parrot for $120.” In this case

  1. B has accepted the offer of A

  2. B has made a counter offer to A

  3. A is bound by the actions of B

  4. B cannot make such an offer
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

B's reply introduces a new condition (purchase of parrot), making it a counter offer, not acceptance. A counter offer rejects the original offer and creates a new one, terminating the original offer.

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