If the offer is reduced before the expiry, what is the treatment of the original offer?

• A. The original offer remains valid.
• B. The original offer is treated as withdrawn.
• C. The original offer is extended by 7 days.
• D. The original offer becomes unconditional.

Answer: (B)

When the terms of an offer are altered before it expires, that change functions as a counter-offer. A counter-offer rejects the original terms and terminates the initial offer, so the original offer is withdrawn. The offeree would now have to accept the new terms (the counter-offer) for a contract to form; the original terms can no longer be accepted. It doesn’t stay valid, extend the time, or become unconditional simply because a modification was made.