Which of the following statements about a counteroffer is true?

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Multiple Choice

Which of the following statements about a counteroffer is true?

A counteroffer rejects the terms of the original offer and presents a new set of terms as a fresh offer. This means the initial offer is no longer on the table, and the other party now decides whether to accept the new terms, reject them, or propose another counteroffer. In real estate negotiations, this is why a seller faced with a buyer’s counteroffer can either agree to the revised terms, push back with another counterproposal, or walk away. A counteroffer isn’t merely an addendum adding terms to the existing contract, nor is it just an invitation to negotiate; it creates a concrete new offer that can form a binding contract if accepted. It doesn’t require the original terms to remain open—the original offer is terminated once a counteroffer is made.

A counteroffer rejects the terms of the original offer and presents a new set of terms as a fresh offer. This means the initial offer is no longer on the table, and the other party now decides whether to accept the new terms, reject them, or propose another counteroffer. In real estate negotiations, this is why a seller faced with a buyer’s counteroffer can either agree to the revised terms, push back with another counterproposal, or walk away. A counteroffer isn’t merely an addendum adding terms to the existing contract, nor is it just an invitation to negotiate; it creates a concrete new offer that can form a binding contract if accepted. It doesn’t require the original terms to remain open—the original offer is terminated once a counteroffer is made.

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