(i) Counter-offer
A counter-offer arises where the offeree tries to change the terms of the original offer that has been made rather than directly accepting it. The consequence of making a counter-offer is to bring the original offer to an end so it is no longer possible for that original offer to be accepted at a later time. For example, in Hyde v Wrench (1840), Wrench offered to sell his farm for £1,000. Hyde offered £950, which Wrench rejected. Hyde then informed Wrench that he accepted the original offer. It was held that there was no contract. Hyde’s counter-offer had effectively ended the original offer and it was no longer open to him to accept it.
A counter-offer must not be confused with a request for information. Such a request does not end the offer, which can still be accepted after the new information has been elicited. See Stevenson v McLean (1880), where it was held that a request by the offeree as to the length of time the offeror would give for payment did not terminate the original offer, which he was entitled to accept prior to revocation. |
