What happens if an offeree makes alterations to an offer?

When an offeree makes alterations to an offer, it results in the original offer being extinguished. This concept is based on the principles of contract law, where a counteroffer is created when the original terms are altered in any way. By making modifications, the offeree effectively rejects the original offer and proposes new terms for consideration. This means that the original offer is no longer available for acceptance, as there is now a new proposal on the table.

The extinguishing of the original offer allows both parties to revisit and negotiate the terms based on the new conditions presented in the counteroffer. The offeror is then free to accept, reject, or further negotiate the revised terms. Understanding this principle is crucial in contract negotiations, as it emphasizes the importance of clear communication and consensus on terms before a binding agreement is reached.