Which of the following statements is true of 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 response to an initial offer that proposes different terms. By making a counteroffer, the offeree becomes the offeror, and the original offer is terminated. Therefore, Option B is the correct answer. Option A is incorrect as the offeree who makes the counteroffer becomes the offeror. Option C is incorrect as a counteroffer can be made only by the offeree. Option D is incorrect as the counteroffer needs to be communicated to the offeror for it to be valid.

Which of the Following Statements Is True of a Counteroffer