Zainab wants to sell her house to Tiffany for $300,000. Tiffany responds stating that she will be glad to buy the house at $300,000 and asks if the price includes the furniture. Zainab says that the furniture is not included. Tiffany agrees to pay $300,000, but Zainab demands $350,000, stating that Tiffany's counteroffer terminates the earlier offer. Discuss the case.
What will be an ideal response?
If the acceptance changes the terms of the offer or adds new terms, it is not really an acceptance. It is a counteroffer, and negotiations continue. Tiffany merely made an inquiry, not a counteroffer, since she did not add any new terms. The mailbox rule states that the offeror cannot revoke the offer once the offeree has accepted it. Tiffany accepts Zainab's $300,000 offer before Zainab revokes the offer. Hence, Zainab is bound by the contract and must sell the house to Tiffany for $300,000.
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