Under common law, what is the effect if an acceptance changes a term?

• A. Acceptance is an effective acceptance.
• B. Acceptance is a rejection that terminates the offer.
• C. Acceptance creates an option contract.
• D. Acceptance creates a counteroffer but remains open.

Answer: (B)

Under common law, acceptance must mirror the terms of the offer. If you respond with changes to any term, that response isn’t an acceptance at all; it’s treated as a rejection of the original offer and creates a new offer. The original offer is terminated, and the parties would only form a contract if the new offer is later accepted.

That’s why the best statement is that such a response acts as a rejection that terminates the offer. The other ideas don’t fit because altering terms does not constitute effective acceptance, it doesn’t inherently create an option contract, and it does not leave the original offer open.