Calistoga offers to sell her home to Drake for $300,000. Drake asks her if she would accept $250,000. Which of the following is true?
a. Drake;s response is mere inquiry; therefore, the $300,000 offer by Calistoga is still in force.
b. Drake's response is a counteroffer effectively terminating the $300,000 offer and instigating an offer for $250,000.
c. Drake's response is a rejection of the $300,000 offer, and there is no offer for $250,000 because it is too indefinite to be an offer.
d. Because of ambiguity, both offers are terminated by operation of law.
Answer: A
Tax
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