Counter-offer (English contract law)
A counter-offer proposes different contractual terms in response to an offer. In English law it generally rejects the original offer, so the offeree cannot later accept that original offer unless it is renewed. Whether a response is truly a counter-offer rather than a request for information depends on its wording and context. The new proposal requires acceptance under the applicable rules.
Worked example
A seller offers to sell a machine for £10,000. The buyer responds, “I offer £9,000 instead.” If that response is a counter-offer, it rejects the £10,000 offer; the buyer cannot later insist on accepting the original unless it is renewed.
Common mistake
Treating a counter-offer as an acceptance, or assuming every question about the offer necessarily rejects it.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Direct | September 2026–June 2027 |