Law – 3 Law of contract | e-Consult

A counter‑offer operates as a rejection of the original offer and simultaneously puts forward a new offer. The original offer is terminated and can no longer be accepted unless the original offeror renews it.

The leading case is Hyde v. Wrench (1840) 3 Beav 334. In that case, Wrench offered to sell his farm for £1,000. Hyde replied with a counter‑offer of £950, which Wrench rejected. When Hyde later attempted to accept the original £1,000 offer, the court held that the original offer had been terminated by the counter‑offer, and therefore no contract was formed.