Future Business Leaders of America (FBLA) Business Law Practice Exam

What is an example of a situation where the mirror image rule is not applied?

1. Counteroffer presented with new terms

2. Acceptance with the same terms

3. Revocation of the offer

4. Withdrawal before acceptance

The correct answer is: Counteroffer presented with new terms

The mirror image rule is a principle in contract law stating that an acceptance must match the terms of the offer exactly; otherwise, it is considered a counteroffer rather than an acceptance. In the context of this rule, when a counteroffer is presented with new terms, it does not mirror the original offer. Instead, it introduces changes or additional conditions that the original offeror must accept for a contract to exist. When a counteroffer occurs, the original offer is effectively rejected, and negotiations may continue based on the new terms presented. This situation exemplifies the scenario where the mirror image rule is not applied because the acceptance does not reflect the original terms but alters them, leading to an entirely new offer. In contrast, acceptance with the same terms adheres to the mirror image rule since it reflects the original offer perfectly. Revocation of the offer and withdrawal before acceptance are also actions related to the offer itself rather than responses that would necessitate consideration of the mirror image rule.