counter-offer

Definition

Offer given in response to an offer. It implies rejection of the original offer and puts the ball back in the court of the original offerer who has three options: to (1) accept it, expressly (by replying) or by implication (by not replying), (2) issue another (counter-counter) offer, or (3) reject it expressly. No binding contract can be created until one party accepts the other's offer. Counter offers come in many guises; a seller's acknowledgment (with estimated delivery dates) of a purchase order may, in fact, constitute a counter-offer.