LAWS1000 Chapter Notes - Chapter 3: Purchase Order, All England Law Reports, U.S. Route 73
Document Summary
An offeree can respond to an offer in the following ways: A counter-offer occurs when an offeree indicates a willingness to deal on terms slightly different from those of the original offer, although still in respect of the same or substantially the same subject matter. It constitutes a rejection of the initial offer and a substitution of a new offer which can either we accepted or rejected. The counter-offer acts as a rejection of the initial offer and so if the counter-offer is rejected, the original offer cannot then be accepted. Hyde v wrench (1840) 3 beav 334; 49 er 132. A mere inquiry as to whether an offeror would be prepared to modify the offer is not an acceptance, but neither is it a rejection. An inquiry has an entirely neutral effect on the offer, and when the offeror replies, the offeree still has the option of accepting or rejecting the offer.
