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Piyush

Piyush (Querist)
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02 February 2018 What is difference between cross offer and counter offer?

Arpit

Arpit (Expert)
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03 February 2018 Cross offer: It means offer that a party makes to each other in ignorance of each others offer/s. Cross offers are identical. In the case of cross offers, no binding contract will be created and the offer could not be said to have been accepted by any of the party.

Ex: XYZ writes a letter to ABC offering him to sell his car for Rs 100000. At the same time ABC writes a letter to making a similar offer to buy his car for Rs 100000. Offers of both XYZ and ABC cross each other. Such offers do not constitute to acceptance of one's offer by the other.

Counter Offer: On the other hand, in counter offer there is a rejection of the original offer and a new offer is made that needs acceptance by the original promisor before a contract can be made.

Ex: XYZ offers ABC his car for Rs 100000. ABC rejects the offer and offers XYZ to buy his bike for Rs 80000. Such an offer is known as the counter offer.