cross and counter

Question

Define cross and counter offer in details.

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Law aditya nandan 6 months 2 Answers 161 views 0

Answers ( 2 )

  1. This comment is edited.

    Cross offer – Second offer on same term or identical offer is made in ignorance . This is not binding contract in such a case , as one’s offer cannot be constructed as acceptance by other .
    Example : Mr A to Mr B : Will you sell your house for 1 lakh
    Mr B to Mr A : Will you purchase my house for 1 lakh
    So , here identical offer is made in ignorance

    Counter offer – second offer is made on changed terms . Counter offer amounts to rejection of the original offer.
    If in above example B replied will you purchase my house for 2 lakhs
    So here terms get changed
    This leads to the rejection of offer

  2. Offer and acceptance are elements required for the formation of a legally binding contract:the exptessiin of an offer to contact on certain terms by one person (the “offeror”) to another person (the “offeree”) and an indicatiin by the offeree of its acceptance of those terms.

    CROSS OFFER- cross offer refers to an offer made to another in ignorance that the offeree has made the same offer to offeror. The terms and condition in both the offers are identical.
    In this case no contract will be created as ones offer cannot be construed as acceptance by other.
    Example- Mr.x offers mr.y to buy his flat for rs.25lacs by writting aleeter, at the same time mr.y offer mr.x on phone “will you sell your flat for rs.25lacs to me?” Neither x nor y has knowledge of the others offer. The offer of x and y are called cross offers.
    The contract is not concluded as neither of the parties has accepted the offer of the other.

    COUNTER OFFER-when an offeree offers to accept the offer of the offeror subject to some modification or condition , the offer of offeree is called counter offer. Counter offer becomes an offer itself and therefore amounts to rejection of the original offer.
    Example- mr.x asks mr.y ” will you purchase my flat for rs.25lacs?” mr y replies i will purchase your flat for rs.20lacs only. In this case the offer of mr.y is called counter offer and it brings an end to the original offer. The original offer is invalid.
    However if mr.x accepts mr.y offer the contract will be ccincluded.

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