Nils bargains with the city of Fargo, North Dakota, concerning a contract to design a waste-to-energy incinerator that is to double as a tourist attraction. Integrated into the structure will be a ski slope with areas for skiers of all skill levels. On January 12, the city sends a written offer that states, “Acceptance of this offer must be made by registered or certified mail and received no later than January 22.” Nils eventually responds with a note accepting the offer. Nils uses an overnight delivery service. The city receives the note January 23.

Do Nils and Fargo have a contract? No. Fargo received Nils’s note one day after its deadline had expired. For this reason, his response to the city’s offer is a counteroffer—

a new ______________. When an offeror specifies a date for acceptance, an offer automatically ______________ on that specified date. This ______________ the offeree’s power to accept the offer. An attempted acceptance after the expiration constitutes a new offer.