A counter offer in the law of contract operates as a rejection of the original offer.
When one party makes an offer to another party, they are essentially proposing certain terms and conditions for entering into an agreement.
However, if the second party responds to this offer with a counter offer, it means that they are suggesting different or altered terms for the agreement. In legal terms, a counter offer is seen as a rejection of the initial offer because it indicates that the second party is not willing to accept the original terms proposed by the first party. The counter offer essentially ends the original offer and opens up negotiations for new terms of the agreement.
Therefore, it is important to understand that a counter offer does not operate as an acceptance, an offer, or a contract.
It is a clear indication that the second party is not in agreement with the terms of the original offer and wishes to propose new terms for consideration.