Under Illinois contract law, what is the legal effect of a counteroffer on the original offer?
Correct Answer
B) The counteroffer rejects the original offer and substitutes new terms that the original offeror must then accept or reject
Under Illinois contract law, a counteroffer simultaneously rejects the original offer and presents a new proposal. The original offer is extinguished and cannot be accepted after a counteroffer is made. The original offeror becomes the new offeree and must accept, reject, or counter the new terms to form a binding contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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