Which term describes the response that modifies the original offer?

Which term describes the response that modifies the original offer?

• A. Offer
• B. Acceptance
• C. Counteroffer
• D. Consideration

Answer: (C)

In contract negotiation, the term describes a response that changes the terms of the original proposal. This is a counteroffer: it rejects the initial offer and proposes new terms, effectively creating a new offer for the other party to accept or reject. Acceptance, by contrast, would involve agreeing to the exact terms as stated, with no changes. The original offer is considered terminated once a counteroffer is made, because it signals a rejection and a restart of negotiations. Consideration is about the exchange of value underpinning the deal, not about the type of response to an offer. For example, if one party offers to sell a bike for $100 and the other party says, “I’ll pay $90,” that shifts to a counteroffer—new terms that the first party can accept or reject.

In contract negotiation, the term describes a response that changes the terms of the original proposal. This is a counteroffer: it rejects the initial offer and proposes new terms, effectively creating a new offer for the other party to accept or reject. Acceptance, by contrast, would involve agreeing to the exact terms as stated, with no changes. The original offer is considered terminated once a counteroffer is made, because it signals a rejection and a restart of negotiations. Consideration is about the exchange of value underpinning the deal, not about the type of response to an offer. For example, if one party offers to sell a bike for $100 and the other party says, “I’ll pay $90,” that shifts to a counteroffer—new terms that the first party can accept or reject.