ContractsQuestion 49 of 100
When a buyer makes a counteroffer, the original offer is:
a.Still open for acceptance
b.Automatically accepted
c.Terminated and rejected
d.Converted into an option
Explanation
A counteroffer rejects and terminates the original offer and creates a new offer that the other party may accept or reject. The original offeror can no longer accept the terminated offer unless it is renewed. This is why negotiations proceed through successive counteroffers.
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