Jack is buying the Padillas' home. He makes his offer and in his terms states, he wants all the window treatments, refrigerator,
and microwave to be part of the sale. The Padillas accept his offer on the condition that the refrigerator is the only item that stays in the home. Which contract term applies?
a) Implied Agreement
b) Novation
c) Counteroffer
d) Option
A counteroffer determines this when an offer is being created for the purpose of the earlier offer by another person during the negotiation for creating the ending contract. To make the counteroffer is to reject the previous offer and is created under the terms of the counteroffer or there will be no contract.
Here according to the given scenario, Jack makes the offer in the condition that he needs only microwave, refrigerator, and window treatment and this will be a sale part. Now, Padilla who is selling the home is accepting the terms of Jack with the condition that the refrigerator will remain in the home. So, this case is called the counter offer.
Elastic demand is where a change in price causes a significant change in demand, therefore 20 hats to 15 hats can be considered significant and we can conclude that it's elastic demand.
