When a seller makes a counteroffer to a buyer's original offer, what is the legal effect?
Correct Answer
B) It rejects the original offer and creates a new offer
Under Oklahoma contract law, a counteroffer operates as a rejection of the original offer and simultaneously creates a new offer. The original offer is extinguished and cannot be accepted after a counteroffer is made. The buyer then becomes the offeree and may accept, reject, or counter the new offer.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
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.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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