Question

Rafi offers to sell his sailboat, Sea Siren, to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I’ll pay no more than $40,000." Rafi’s offer is a. terminated. b. rejected and subject to a counteroffer. c. revoked. d. still open.

Answer 1

Answer:

Correct option is (b)

Explanation:

Rafi expresses his desire to sell his sailboat for $50,000. Tara offers a counter offer of buying the sailboat for $40,000 as similar vessels are priced around $40,000.

Counter offer refers to providing another offer against the initial offer that was rejected by the offeree. In this case, Tara' s offer to pay $40,000 is counteroffer. So, it can be said that Rafi's offer to sell at $50,000 was rejected and subjected to counteroffer of $40,000.