‘A’ offered to sell his house to ‘B’ for Rs. 25,000. B accepted it for 20,000. Is this a valid acceptance? Discuss.
The terms of the offer or with some other condition not forming part of the offer, then such qualified acceptance amounts to a counter offer.
If the acceptance is conditional and does not absolutely accept the offer, then it is only a counter offer. The term absolute and unconditional means full acceptance of the offer without any condition.
Counter offer takes place, when an offeree adds/changes some conditions or terms of the offeror at the time of acceptance. Counter offer thus changes the terms of offer and therefore counter offer is not acceptance, but only a fresh offer made by the offeree.
In other words, an acceptance with counter offer is no acceptance at all. The Counter offer made by the offeree must be accepted by the offeror to constitute a valid contract.
In the given case, it is not a valid acceptance, because it is counter offer. If an offer is accepted with some modification in acceptance amounts to a counter offer and it is not valid acceptance.