Contracts provide much of the structure and stability that is necessary to run a successful business in North Carolina. However, conceiving of, drafting and signing a contract does not always proceed as smoothly as one would like. There are many situations where it might be appropriate to revoke, reject or counteroffer a contract.
Revoking an offer
There are times when a business might make an offer, only to later realize that it is not the best decision. This offer can be revoked so long as the other party has yet to accept. Once the other party accepts the offer, revocation is off the table. If there was an agreement to keep an offer available for a specific period of time, it cannot be revoked until that period has closed, either.
Rejections and counteroffers
Not all contracts are in the best interests of a business, and it is perfectly acceptable to reject an offer. This can take two forms — an outright rejection or a counteroffer. A rejection is when the other party completely rejects the offer without any opportunities to amend it. A counteroffer is when the other party responds to the offer with new terms, such as a lower price, more product or different time periods. When deciding to accept an offer, a business can:
- Clearly state the acceptance in writing
- Promise to perform according to the contract’s terms
- Fully perform according to the contract’s terms
- Improperly perform according to the contract’s terms
A business contract should elevate and support a business’ goals. North Carolina business owners should carefully consider every contract they receive as well as offer to ensure that they are in line with those goals. In some situations, it is even helpful to review an offer under the guidance of a knowledgeable attorney.