MBE Rules · Contracts
Termination of offer — rejection
The rule
Rejection by the offeree terminates the power of acceptance. A counter-offer operates as a rejection plus a new offer (common law); a mere inquiry or request to keep the offer open does not.
In plain English
If you say no to an offer, you can't later say yes to it. If you suggest a different deal instead, it's like saying no and making a new offer.
Worked example
The buyer tells the seller, 'No, but I'll pay $90 instead of $100.' This ends the original $100 offer and starts a new $90 offer.
Memory hook
Reject & Reset: Say no, let go. Rejection kills the offer; counter-offer revives with new terms.
The trap
Students think: Any response is rejection. Wrong, because mere inquiries don't terminate. Actual test: offeree's intent to reject.
How examiners test it
The MBE loves: offeree responds with a question or suggestion. Trap: assuming it's rejection. Look for clear rejection or counter-offer intent.
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