![]() It is possible to phrase what appears to be a counteroffer so that it does not destroy the original power of acceptance. ![]() But Betty responds, "I'll only pay $8." Betty's response is a rejection of Alan's offer but gives Alan a new power of acceptance. For example, Alan says to Betty, "I'll sell you my watch for $10." At this point Betty has the power of acceptance. Therefore, it is simultaneously a rejection of the original offer. Alice is not permitted to revoke during the week.Ī counteroffer is a new offer that varies the terms of the original offer. Bob gives Alice $1 to keep the offer open for a week. For example, Alice offers to sell Bob her watch for $10. However, if the offeree gives some separate consideration (discussed below) to keep the offer open for a certain period of time, the offeror is not permitted to revoke during that period. For example, Alice says to Bob, "I'll sell you my watch for $10, and you can have a week to decide." Alice is free to revoke her offer during the week, as long as Bob has not accepted the offer. In the case of options, the general rule stated above applies even when the offeror promises to hold the offer open for a certain period of time. This is partially due to the maxim that an offeror is the "master of his offer." Ordinarily, an offeror is permitted to revoke their offer at any time prior to a valid acceptance. Īn offer is a display of willingness by a promissor to be legally bound by terms they specify, made in a way that would lead a reasonable person in the promisee's position to understand that an acceptance is being sought and, if made, results in an enforceable contract. Any variation thereof constitutes a counteroffer. At common law, the terms of a purported acceptance must be the "mirror image" of the terms of the offer. ![]() However, contracts can also be implied in fact, as discussed below. Mutual consent, also known as ratification and meeting of the minds, is typically established through the process of offer and acceptance. Duty of good faith (also implied covenant of good faith and fair dealing or duty to negotiate in good faith) 7.Duty of honest contractual performance (or doctrine of abuse of rights) 6.Liquidated, stipulated, or penal damages 3.UNCITRAL Model Law on International Commercial Arbitration.UNIDROIT Principles of International Commercial Contracts. ![]()
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