Graham is gifted a pair of Nike racing shoes for his birthday by Wendy, who purchased them direct from the manufacturer several months earlier for 275. Having tried the shoes on one short run Graham has determined that the shoes are too unstable for his needs putting him at risk of injury. Wendy is unable to return them to the manufacturer given the time since purchase. On Saturday, Graham emails Claire from his local running club offering to sell the Nike shoes for 200. Claire replies on Sunday confirming that the shoes would be ideal for her for an upcoming race, but she would only be willing to pay up to 180. Graham checks his emails on Thursday, reads Claires email and responds saying 180 is fine. In the meantime, Claire bought a pair of the exact same shoes in the manufacturers online sale for 185. These arrive quickly and Claire is able to show them off at the running club on Wednesday evening, which Graham also attends. Which of the following most appropriately describes the legal position between Claire and Graham?

1. Claires reply is a counter offer that Graham is free to accept and does so.
2. Claires reply rather than an acceptance is a rejection of Grahams offer to sell.
3. Claires reply is a counter offer that is revoked before Grahams acceptance.

Claires reply rather than an acceptance is a statement in negotiation over the price.