What Is a Counter Offer in Contract Law

The accepting authority of an addressee is not terminated by a conditional or formally qualified acceptance, but not in substance. For example, Mrs. X decides to put her house on the market for $300,000. Mr. Y reviews it and instead makes an offer of $285,000. Instead, Ms. X decided to make a counter-offer of $295,000, thus imposing the obligation on Mr. Y, accepting, rejecting or contradicting the offer, and continuing negotiations again. In contract law, a proposal made in response to an initial offer that modifies its terms but has the legal effect of rejecting it.

Please note that there is a difference between performance and service preparation. A provider cannot revoke an offer after the target recipient has started using the service. However, if the target recipient has only started preparations for the service, but not yet with the provision of the service, the provider may revoke the offer. For example: The second exception is indirect revocations. A tender shall be deemed to be withdrawn even if there is no direct communication between the tenderer and the target recipient, if the target recipient receives reliable information indicating that the supplier has taken steps demonstrating that it has changed its mind. See Dickinson v. Dodds, 2 Ch.D. 463 (1876). For example, in the case of option contracts, a counter-offer made during the option period does not terminate the accepting authority because the target recipient has the contractual right to keep the offer open for its duration. See Humble Oil and Refining Co.c. Westside Investment Corp., 428 S.W.2d 92 (Tex.

1968). For example, the rule here is that a fixed bid is irrevocable if the bidder should reasonably have anticipated that the target recipient would rely on the bid before accepting it and that the target bidder would actually rely on the bid. An example: the recipient`s acceptance authority can also be terminated by a counter-offer. A “fixed offer” is an offer that is intended to remain open for a certain period of time by its explicit or implicit terms. In our last example, Michael Scottie made a firm offer because he agreed to keep the offer open for a while. According to the common law, an acceptance had to be a “mirror image” of the offer. In other words, if an acceptance deviated from the offer in any way, it was considered a qualified or conditional acceptance and did not constitute a valid acceptance. Instead, it had the legal effect of a counter-offer. We have already said that a unilateral contract is a contract in which the bidder makes a promise and the target recipient demonstrates its acceptance through an action.

Problems occur when a provider for a one-sided contract tries to revoke the offer after the service begins, but before the service has been completed. Let`s say Jerry made his offer to Ben in the mail and the letter says Jerry Ben will sell four thousand gallons of milk a month for $1 a gallon and the offer will remain open for two weeks. The question is when the two-week period begins to run. Will the offer remain open for two weeks from the day Jerry sent the offer or for two weeks from the day Ben received the offer? A counter-offer is usually subject to conditions. If the seller receives a low offer, the seller can counter with a price deemed reasonable. The buyer can either accept this offer or counter it again. The seller can thwart the offer. The person receiving the counter-offer is not obliged to accept it.

With regard to binding offers for the sale of goods, U.C.C. declares that a written and signed offer by a trader to buy or sell goods that promises to be kept open is irrevocable for the specified period, even if the promise has not been taken into account. If it is promised to keep the offer open but no specific period is specified, the offer cannot be revoked for a reasonable period of time. However, whether or not the period is expressly specified, an offer cannot be kept open for more than three months. See U.C.C. 2-205. According to the modern rule, a unilateral contract offer cannot be revoked after the start of the service, unless the service is not concluded within a reasonable time. For example: the first exception concerns public offerings.

A publicly made offer (para. B of rewards) may be revoked by publishing the revocation in the same manner as the offer was published. This type of publication ends the power to accept, even for people who may have seen the offer but did not see the revocation. For example, a seller may want to sell a vehicle for $20,000. A buyer comes and offers $15,000 for the vehicle. The supplier offers a counter-offer and charges $16,000 in order to get a higher price. If the target recipient refuses, the seller cannot force the buyer to buy the vehicle for $15,000, even if the buyer suggested that price. Termination of the Beneficiary`s right of acceptance may result from one of the following six reasons: If an Offer is sent by mail, acceptance will be considered timely if it is sent within a reasonable time in the circumstances. When two parties come together to negotiate a transaction or transaction, you can put an offer on the table. A counter-offer is a response to this initial offer and may change the terms of the agreement, including the price. The price may be higher or lower than what was originally stated, depending on who does it. Thus, if the person receiving the initial offer does not accept it or rejects it, he can decide to renegotiate with a counter-offer.

The next exception to the rule that fixed offers are revocable before the expiry of the specified time limits concerns trust. The general rule is that a revocation is effective when the target recipient receives it. For example: Conditional or Qualified Acceptance: Conditional or partial acceptance that modifies the original terms of an Offer and executes a Counter-Offer. Moreover, a promise to keep an offer open may be implicit rather than expressed. For example, even if VoltCorp had not explicitly promised to keep its suboffer open until April 5, there would be an implicit promise to keep the suboffer open for a reasonable period of time after the Pentagon awarded the contract. A counter-offer acts both as a rejection of an offer to enter into a contract and as a new offer that significantly changes the terms of the initial offer. Since a counter-offer serves as a rejection, it completely invalidates the initial offer. This means that the initial offer can no longer be accepted. The termination of an offer may also take place by an effective revocation of the offer by the supplier. A revocation is a revocation of the offer. For example, if Marsha offers to sell Jan a box of Girl Scout cookies for $1, and before Jan agrees, Marsha changes her mind and withdraws the offer, the offer has been revoked and Jan`s permission to accept the offer has been terminated.

Option contract: A contract entered into to keep an offer open for a certain period of time so that the supplier cannot withdraw the offer during that period. The promise to keep the offer open is underpinned by considerations. What constitutes a reasonable period of time depends on the circumstances. When the parties negotiate in person or by telephone, the acceptance period generally does not extend beyond the end of the conversation, unless an intention to the contrary is indicated. For example, if the provider tells the target recipient to take the time to reconsider the offer, the target recipient will have a reasonable amount of time to review the offer and accept it if they wish. .