Multiple choice

A counter offer is:

  1. an invitation to offer

  2. an acceptance to offer

  3. a rejection of the offer

  4. a conditional acceptance

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

A counter offer operates as a rejection of the original offer and simultaneously constitutes a new offer. It is essentially a conditional acceptance - 'I accept, but only if...' - which destroys the original offer. The original offeror can then accept this counter offer to form a contract.