Collector Carl displays his beer can collection at the local swap meet.Mary sees the collection and is interested in buying it.Carl says he will sell the collection for $1,500.Mary says she really likes the collection but is only willing to pay $1,000.Which of the following is correct?
A)Mary's counteroffer terminates Carl's offer of $1,500.
B)If Carl rejects Mary's counteroffer,she can still accept Carl's offer of $1,500.
C)Neither offer is valid.Who would ever pay $1,000 or $1,500 for a beer can collection?
D)Mary's offer is an option contract and she cannot revoke the offer.

Question

Quizplus · Accepted Answer

Mary's counteroffer terminates Carl's original offer of $1,500. A counteroffer is a rejection of the original offer and creates a new offer with different terms. Therefore, Carl is no longer bound by his original offer of $1,500, and Mary cannot accept it after making the counteroffer of $1,000.

Collector Carl Displays His Beer Can Collection at the Local