Question

Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by:_________.

a) Grant
b) Honda
c) Lvy
d) No one_Grant's offer is still open

Answer 1

c) Ivy

Step-by-step explanation:

When grant offered the car, for $10,000, Ivy was to either accept it or reject it. As per the rules of acceptance, Ivy has to agree with the terms as stipulated by Grant. Acceptance means unqualified and absolute agreement with all the terms in the offer. Modifications or deviations or negotiations are considered as counter-offers.

A counter-offer brings to an end the original offer. Ivy did not accept Grant's offer as it was presented. She made a counter-offer to grant, which, according to the rules of acceptance, killed the original offer. Ivy rejected Grant's offer when she made the counter-offer.