In a counter offer scenario, what role does the original offeree assume?

Prepare for the Canadian Hospitality Law Exam. Brush up on legal topics with flashcards, and detailed multiple-choice questions. Ace your exam!

In a counter offer scenario, the original offeree becomes the offeror. This occurs because when the original offeree proposes different terms in response to the initial offer, they are effectively making a new offer to the original offeror. This action cancels out the original offer, as a counter offer serves to reject it.

By initiating the new terms, the original offeree takes on the role of the offeror, thereby assuming the responsibilities and rights that come with making an offer. The new offer must be accepted by the original offeror for a binding agreement to be formed.

This understanding is essential in contract law as it clarifies how negotiations evolve and how the roles of the parties change throughout that process. The other choices do not accurately capture the legal significance of a counter offer and the implications it has on the status of the parties involved in the negotiation.

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