Contracts and Sales Multistate Bar Practice Exam

What constitutes a rejection of the original offer?

1. Mere inquiries about price

2. A counteroffer with different terms

3. A request for additional time to consider

4. Express acceptance of the original offer

The correct answer is: A counteroffer with different terms

A counteroffer with different terms constitutes a rejection of the original offer because it effectively alters the terms of the initial proposal, indicating that the offeree is not willing to accept the original terms. The moment a counteroffer is made, the original offer is nullified; it is no longer valid or open for acceptance. Instead, the counteroffer becomes a new offer that the original offeror can either accept, reject, or ignore. In contrast, mere inquiries about price do not suggest any intention to alter or reject the original offer; they simply ask for additional information. Similarly, a request for additional time to consider does not modify the original offer and does not signal a rejection—it's more of a negotiation for time without changing the terms. Lastly, an express acceptance of the original offer indicates agreement and acceptance, not a rejection. Thus, a counteroffer distinctly communicates the offeree’s intent to change the terms, marking it as a rejection of the original offer.