DB offered to sell a cap in her possession for $10. Dan said he would pay $5.
A)There is a contract for the sale of the hat for $10.
B)There is a contract for the sale of the hat for $5
C)There is no contract because Dan's counter-offer terminated his power of acceptance.
D)There is a contract if DB says nothing to Dan's proposal, because then her silence would be an acceptance.

Question

DB offered to sell a cap in her possession for $10. Dan said he would pay $5.
A)There is a contract for the sale of the hat for $10.
B)There is a contract for the sale of the hat for $5
C)There is no contract because Dan's counter-offer terminated his power of acceptance.
D)There is a contract if DB says nothing to Dan's proposal, because then her silence would be an acceptance.

Quizplus · Accepted Answer

Dan's counter-offer of $5 in response to DB's original offer of selling the cap for $10 effectively rejects DB's original offer and presents a new offer. Since an original offer is terminated by a counter-offer, there is no contract based on the original terms, and DB's power to accept the original terms is terminated.

DB Offered to Sell a Cap in Her Possession for $10