Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct? a. Mary's offer is an option contract and she cannot revoke the offer.

b. Mary's counteroffer terminates Carl's offer of $1,500.

c. Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?

d. If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.

Question

Business

Kale Wilkins

4 June, 08:27

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct? a. Mary's offer is an option contract and she cannot revoke the offer.

b. Mary's counteroffer terminates Carl's offer of $1,500.

c. Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?

d. If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.

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Answers (1)

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Gustavo · Answer 1

b. Mary's counteroffer terminates Carl's offer of $1,500.

Explanation:

A counteroffer is a response made after receiving an initial offer, thereby rejecting the initial offer and replacing it with another one. Therefore the person giving the initial offer either accepts the counter offer, reject it or make another offer. The counteroffer may be greater or lesser than the original offer. In a negotiation, they can be unlimited number of counteroffers.