Question

The effect of a counteroffer is that it operates as an acceptance of the offer.
True
False

Answer 1

Answer: False : The effect of counter offer is that it does not operates as an acceptance of initial offer.

The counter offer is an offer, which is offered when the initial offer is not accepted. Thus the initial offer may be having the terms and conditions which are not accepted or needs changes in the offer based on the mutual agreement or discussed criteria/inputs.

Thus counter offer is the offer which has required solution for all the non-accepting issues/concerns. The counter offer generally accepted by the offer receiver, as it contained the resolved points or it is as per the final agreement between the two parties

So we can say the effect of counter offer is that the offer is accepted by the receiver and it is as per agreement between the two parties.

If the initial offer is accepted by the receiver, then there is no need of counter offer. Counter offer comes in action only when initial offer is rejected or having concerns/issues from any of the party (receiver or offerer).