At a training session in Peoria, Avery Jenkins receives a counteroffer and asks what generally happens to the original offer. Which answer is correct?
Correct Answer
C) A counteroffer generally rejects the original offer and proposes new terms that must themselves be accepted.
A counteroffer is not simple acceptance; it replaces the prior proposal with a new one that requires acceptance.
Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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