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Effect of counter offer

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Effect of counter offer

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Vijay.
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  • June 29, 2021 at 3:15 pm #626604
    tabasumze
    Participant
    • Topics: 40
    • Replies: 48
    • ☆☆

    LW-Glo Bpp practice & revision kit (Pg.154, Q13)

    Under UN Model Law on contracts for the Int.Sale of Goods, what is the effect of counter offer on the original offer?

    a)Acceptance of the original offer as it stands.
    b)Acceptance of the original offer with new terms introduced.
    c)Rejection of the original offer.
    d)No effect on the original offer.

    The correct option in the book was option B
    Isn’t Option C the right answer ?

    How does new terms introduced into the original offer, will form part of acceptance?

    July 5, 2021 at 10:28 pm #627051
    Vijay
    Member
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Hi Tabasumze,

    The correct answer is C. The reason for this is so long as the counter offer is NOT materially different to the original offer and the offeror does not object to the counter offer then it is seen as an acceptance of the offer with a few minor amendments.

    The offeror is always free to reject the counter offer in which case it would not amount to being an acceptance.

    I hope this clarifies.

    Kind regards,

    Vijay

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