Multiple choice

Fact: A offered to sell a farm for £ 1, 000, x said he would give £ 950. A refused and x than said he would give £ 1,000, and when A declined to adhere to his original offer tried to obtain specific performance. Issue: Is there a valid contract between A and x ?

  1. There is not valid contract as x' s offer to pay £ 950 is a refusal of the offer and a counter offer.

  2. There is a valid contract and A is liable for specific performance.

  3. It is voidable contract at the option of x

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

X's offer of £950 was a counter-offer, which terminated A's original offer of £1,000. When X later tried to accept the original terms (£1,000), the offer no longer existed. A counter-offer acts as a rejection of the original offer.

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