Arnold has offered to take Bob into his accounting firm as a partner upon payment of $5,000 cash. In response, Bob says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."
A) Bob has made a counteroffer and hence there is no contract.
B) Bob has rejected the terms of the original offer, but there is still a contract.
C) Under Article 2 of the UCC, Arnold is a merchant making a firm offer. Hence there is a contract.
D) Any indefinite provisions in the contract between Arnold and Bob will be supplied by Article 2 of the UCC.

Question

Quizplus · Accepted Answer

Bob's response is a counteroffer because he proposes different terms (payment amount and timing) than those originally offered by Arnold. This means the original offer is rejected, and no contract exists unless Arnold accepts Bob's counteroffer.

Arnold Has Offered to Take Bob into His Accounting Firm