Which of the following statements is true about a counteroffer?
A)An offeree that makes the counteroffer is still considered the offeree.
B)A counteroffer terminates the existing offer.
C)A counteroffer can only be made by the offeror.
D)A counteroffer need not be communicated to the offeror.

Question

Quizplus · Accepted Answer

A counteroffer is a rejection of the original offer and creates a new offer. Therefore, it terminates the existing offer. The offeree making the counteroffer becomes the new offeror, and the original offeror becomes the new offeree. Option A is false because the offeree making the counteroffer becomes the new offeror. Option C is false because a counteroffer can be made by either party, not just the offeror. Option D is false because a counteroffer must be communicated to the original offeror to be effective.

Which of the Following Statements Is True About a Counteroffer