Under contract law, a counter-offer is regarded as a rejection of the original offer. When one party receives an offer from another party, they have the option to accept the offer, reject the offer, or respond with a counter-offer. If the party responds with a counter-offer, it is essentially a new offer that replaces the original offer.
In essence, a counter-offer is a rejection of the original offer and the creation of a new offer. It is important to note that a counter-offer can be made with different terms than the original offer, and the other party has the option to accept, reject, or counter the new offer.
Once a counter-offer is made, the original offer is no longer valid. If the party who made the original offer wants to accept the counter-offer, they must accept the new terms. If they do not wish to accept the new terms, they can reject the counter-offer and the negotiation process can continue until both parties are able to come to an agreement.
Overall, it is important to understand the implications of making a counter-offer in a contract negotiation. While it may seem like a simple way to negotiate terms, it is important to realize that a counter-offer essentially replaces the original offer and creates a new set of terms to be negotiated. In order to successfully navigate contract negotiations, it is important to have a clear understanding of contract law and the implications of various negotiating tactics, such as counter-offers.