A offers to sell his car to B for KSh 500,000. B replies, 'I will pay KSh 450,000.' In law, B's reply is

Answer and explanation

Correct answer: B. a counter-offer, rejecting A's offer

  1. Step 1: A counter-offer destroys the original offer, which B cannot later accept. Answer: a counter-offer, rejecting A's offer. Why not the others: an acceptance of A's original offer: B did not agree to A's terms. an invitation to treat: B made a definite proposal. a request for information about the car: B named a different price, which is more than a request.

Practise more Formation of a contract.

Free questions with an explanation for every one, and full timed KASNEB CPA Foundation Level (Kenya) mock tests.