88. An offer was presented but the seller did not accept the offer; instead the seller suggested different terms that would be more acceptable. Which of the following is FALSE?
Answer: C
This is a negotiation that keeps the original offer alive.
In this scenario, the seller's suggestion of different terms does not preserve the original offer; instead, it constitutes a counteroffer that effectively terminates the original offer. Therefore, the statement that this is a negotiation keeping the original offer alive is false.
A) This is a rejection of the original offer.
This option is true as the seller's suggestion of different terms indicates a rejection of the original offer. By proposing new terms, the seller is signaling that they do not accept the initial offer as it stands.
B) This is a counter offer on the original offer.
This statement is correct. When the seller suggests different terms, it constitutes a counteroffer, indicating a new proposal in response to the original offer. Thus, this does not keep the original offer intact.
C) This is a negotiation that keeps the original offer alive.
This statement is false because the act of proposing different terms constitutes a counteroffer, which terminates the original offer. The original offer cannot be accepted once a counteroffer has been made.
D) This kills the original offer, which can no longer be accepted.
This option is true. When a counteroffer is made, it effectively nullifies the original offer, meaning it can no longer be accepted by the original offeror. This aligns with principles of contract law.
Conclusion
The correct answer highlights the misconception that a counteroffer preserves the original offer. In fact, a counteroffer terminates the original offer, making options A, B, and D accurate reflections of contractual principles, while option C is definitively false. Understanding these dynamics is crucial in contract negotiations.