Question

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

a.
Mary's offer is an option contract and she cannot revoke the offer.
b.
Mary's counteroffer terminates Carl's offer of $1,500.
c.
Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?
d.
If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.

Answer 1

Mary's counteroffer terminates Carl's offer of $1,500

Step-by-step explanation:

given data

Carl sell collection = $1,500

Mary willing to pay = $1,000

to find out

Which statement is correct

solution

we know here as Carl will sell collection for $1,500 but

Mary offer is less than that of carl's sell i.e only $1,000

so its $500 extra charges

so we can say correct option is

that Mary's counteroffer terminates Carl's offer of $1,500