Asking for changes to be made to an offer constitutes a __________.

Asking for changes to be made to an offer constitutes a __________.

• A. Acceptance
• B. Counteroffer
• C. Rejection
• D. Modification

Answer: (B)

When an offeree asks to change terms, they are not simply agreeing to what was offered; they are proposing a new set of terms. That action ends the original offer and creates a new offer for the other party to accept or reject. In contract law, this is called a counteroffer, reflecting a shift in the terms rather than a straight agreement to them. The idea hinges on the mirror image rule: acceptance must match the offer exactly. Any change to material terms means there was not an acceptance, but a new offer. For example, if one party offers to sell something for a certain price and delivery date, and the other party says they’ll take it only if the price changes or the delivery date changes, that response is a counteroffer. If instead they had simply said they accept the original terms, that would be acceptance.

When an offeree asks to change terms, they are not simply agreeing to what was offered; they are proposing a new set of terms. That action ends the original offer and creates a new offer for the other party to accept or reject. In contract law, this is called a counteroffer, reflecting a shift in the terms rather than a straight agreement to them. The idea hinges on the mirror image rule: acceptance must match the offer exactly. Any change to material terms means there was not an acceptance, but a new offer. For example, if one party offers to sell something for a certain price and delivery date, and the other party says they’ll take it only if the price changes or the delivery date changes, that response is a counteroffer. If instead they had simply said they accept the original terms, that would be acceptance.