A seller in Manchester, NH receives a buyer's offer of $420,000 on her home. The seller crosses out $420,000, writes in $435,000, initials the change, and returns the document to the buyer's agent. Under New Hampshire contract principles, this action is best described as which of the following?
Correct Answer
D) A counteroffer that terminates the original offer and creates a new offer
Under New Hampshire contract law, when a seller modifies any material term of the buyer's offer and returns it, this constitutes a counteroffer. A counteroffer simultaneously rejects the original offer and creates a new offer from the seller to the buyer. The original offer is terminated and the buyer is now the offeree who may accept, reject, or counter the new terms.
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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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