Which of the following statements is true about a counteroffer?
A)An offeree who makes a counteroffer is still considered the offeree.
B)A counteroffer terminates the existing offer.
C)A counteroffer can only be made by the original offeror.
D)A counteroffer is effective even before it has been received by the original offeror.

Question

Quizplus · Accepted Answer

A counteroffer terminates the existing offer, as it is essentially a rejection of the initial offer and the introduction of a new offer with modified terms. Option A is incorrect, as the offeree who makes a counteroffer becomes the offeror, not the offeree. Option C is incorrect, as the offeree can make a counteroffer if they wish to do so. Option D is incorrect, as a counteroffer is not effective until it is received by the original offeror.

Which of the Following Statements Is True About a Counteroffer