Concept:A counter-offer destroys the original offer and takes effect as a rejection under the law of contract.
Explanation:A counter-offer is a new proposal made in response to an original offer.
It introduces different terms instead of accepting the original terms fully.
For a valid contract to exist, acceptance must be unconditional and must match the exact terms of the offer.
When an offeree makes a counter-offer, the original offer is immediately brought to an end.
This means the offeree has impliedly rejected the original offer by proposing new terms.
The original offeror may then choose to accept or reject the counter-offer.
If the counter-offer is rejected, the offeree cannot later accept the original offer because it no longer exists.
Therefore, the legal effect of a counter-offer is that it operates as a rejection of the previous offer.
Answer:A counter-offer operates as a rejection of the original offer.