Practice & ContractsQuestion 115 of 120
When a seller responds to a buyer's offer by changing the price, the seller has made a:
a.Binding acceptance
b.Ratification
c.Counteroffer that rejects the original offer
d.Novation
Explanation
Changing any material term of an offer creates a counteroffer, which legally rejects the original offer and creates a new offer the other party may accept or reject. The original offer can no longer be accepted once countered. Acceptance must mirror the offer exactly to form a contract.
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