Question

​Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is Select one:

a. rejected and subject to a counteroffer.
b. still open.
c. terminated.
d. revoked.

Answer 1

Answer:

A) rejected and subject to a counteroffer.

Explanation:

A counteroffer refers to a situation where an offer is not accepted by the offeree, and instead the offeree makes a different offer during the negotiations of the contract.

A counteroffer is considered a new offer after an original offer has been rejected. Therefore the original offer is no longer valid.