Explanation:
The correct answer is B: Counter Offer.
A counter offer occurs when the offeree responds to an offer with a modified proposal. In this case, the offeree is offering a qualified acceptance of the original offer, but with modifications and variations. This is considered a counter offer because it changes the terms of the original offer.
Here is a detailed explanation:
1. Offeree and offer:
- The offeree is the person to whom the offer is made.
- The offer is a proposal made by one party to another party, expressing a willingness to enter into a contract.
2. Qualified acceptance:
- The offeree is accepting the offer, but with modifications and variations.
- This means that the offeree agrees to some of the terms of the original offer, but wants to change certain details.
3. Counter offer:
- When the offeree makes a qualified acceptance with modifications and variations, it is considered a counter offer.
- The counter offer changes the terms of the original offer, creating a new proposal.
4. Effect of a counter offer:
- When a counter offer is made, it nullifies the original offer.
- The original offeror can choose to accept the counter offer, reject it, or make another counter offer in response.
In conclusion, when the offeree offers a qualified acceptance of the offer subject to modifications and variations, it is considered a counter offer.

Counter Offer

A counter offer is a response made by the offeree to the offeror in which the offeree proposes modifications or variations to the terms of the original offer. It is a clear indication that the offeree is not willing to accept the offer as it is, but is open to negotiating and reaching a mutual agreement.

Characteristics of a Counter Offer:
1. Qualified Acceptance: The offeree is essentially accepting the offer, but with changes or additions to the original terms. This means that the offeree is making a counter proposal, which the offeror can choose to accept or reject.
2. Modifications and Variations: The counter offer may include changes to the price, quantity, delivery terms, payment terms, or any other aspect of the original offer. The offeree is essentially proposing new terms for the agreement.
3. Rejection of Original Offer: By making a counter offer, the offeree is rejecting the original offer. The counter offer cancels out the original offer and creates a new offer that the offeror can choose to accept or reject.
4. Communication: The counter offer must be communicated to the offeror in a clear and unambiguous manner. It can be communicated orally, in writing, or through any other means of communication that is reasonable under the circumstances.
5. Acceptance of Counter Offer: If the offeror accepts the counter offer, a new contract is formed based on the modified terms. If the offeror rejects the counter offer, the original offer is terminated and the parties are not bound by any agreement.

Example:
Let's say Company A offers to sell 100 units of a product to Company B for $10,000. Instead of accepting the offer as it is, Company B responds with a counter offer stating that they are willing to buy 100 units but at a price of $9,000. In this scenario, Company B has made a counter offer by proposing a modification to the price. Company A can then choose to accept the counter offer, negotiate further, or reject the counter offer and stick to the original terms.

Conclusion:
When the offeree makes a counter offer, it indicates that they are not willing to accept the offer as it is and are proposing modifications or variations. It is important to understand that a counter offer cancels out the original offer and creates a new offer, which the offeror can choose to accept or reject.