Comprehensive analysis, and detailed explanation that is supported by the required course readings:
On May 14, 2010, Steven Seller offered to sell Peter Purchaser a brand new Nintendo DS for $159.00. On May 14th, Steven also promised not to revoke his offer for fifteen days for Peter's promise to pay $50.00; and, Peter promised to pay $50.00 thus forming an option contract. On May 19th, Peter offered to buy Steven's Nintendo DS for $100.00. On May 20th, Steven rejected Peter's counteroffer. On May 24th, Peter accepted Steven's offer of May 14th. Did Peter's counteroffer of May 19th serve to reject Steven's offer of May 14, 2010 so that a contract was not formed? Explain your answer.