When a seller makes a counteroffer, the effect on the original offer is that it:
Correct Answer
B) Rejects the original offer and creates a new offer for the buyer to accept or reject
Under Mississippi contract law, a counteroffer simultaneously rejects the original offer and creates a new offer. The original offer is terminated and cannot be accepted after a counteroffer is made. The roles reverse — the original offeror becomes the offeree who must now accept, reject, or counter the new terms.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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