ContractsQuestion 51 of 120
When a seller responds to a buyer's offer by changing the price, this response is legally a:
a.Binding acceptance of the original offer
b.Novation of an existing contract
c.Counteroffer, which rejects the original offer
d.Unilateral contract
Explanation
A counteroffer changes the terms of the original offer and thereby rejects it, creating a new offer that the other party may accept or reject. The original offer is no longer available for acceptance once countered. Negotiations often involve a series of offers and counteroffers.
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