Collector Antwon displays his beer can collection at the local swap meet. Jiao sees the collection and is interested in buying it. Antwon says he will sell the collection for $450. Jiao says she really likes the collection but is only willing to pay $400. Which of the following is correct?
Jiao's counteroffer terminates Antwon's offer of $450.
If Antwon rejects Jiao's counteroffer, she can still accept Antwon's offer of $450.
Neither offer is valid. Who would ever pay $400 or $450 for a beer can collection?
Jiao's offer is an option contract, and she cannot revoke the offer.