rafi offers a tour of bay harbor aboard his sailboat, sea siren, to tiara’s travel group for $500. referring to the prices for similar tours, tiara’s says, “we’ll pay no more than $400.” rafi’s offer is select one: a. rejected and subject to a counteroffer. b. still open. c. terminated. d. revoked.
A) rejected and subject to a counteroffer. Explanation: A counteroffer refers to a situation where an offer is not accepted by the offeree, and instead the offeree makes a different offer during the negotiations of the contract. A counteroffer is considered a new offer after an original offer has been rejected. Therefore the original offer is no longer valid.
(B) Terminated Explanation:
Will be terminated
Rafi’s offers for the tour of Bay Harbor = $500
Tiara’s willing to pay = $400
Tiara’s Travel Group is not willing to pay the price that Rafi wants to get, Tiara’s Travel Group wants to bow down the price below that value, so Tiara’s Travel Group will reject Rafi’s offer.
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