What does rejection of an offer entail?

Rejection of an offer involves clearly communicating to the offeror that the offeree does not accept the terms presented. This action results in the termination of the original offer, meaning that the offer can no longer be accepted or acted upon by the offeree.

Once a rejection is made, the parties involved are no longer bound to the terms of the original offer, which means that the offeror cannot redeem that specific proposition unless it is renewed or a new offer is made.

In contrast, the other options do not accurately describe the consequences of rejection. For instance, creating a new offer would imply that the rejection simultaneously introduces alternative terms, which is not the case; rejection merely declines the existing offer. Automatic acceptance is the opposite of rejection and contradicts its purpose. Lastly, while rejection does not facilitate renegotiation, it instead closes the door on the original offer unless a new proposal is put forth. Therefore, the accurate interpretation of rejection in the context of offers is that it effectively terminates the original offer.