ContractsIntermediateAlabama Exam

An Alabama seller who withdraws a counteroffer before the buyer accepts it has legally:

ABreached the original contract
BValidly revoked the counteroffer, and there is no binding agreementCorrect
CCreated a binding contract by making the counteroffer, in most cases
DViolated AREC regulations

Why Validly revoked the counteroffer, and there is no binding agreement Is Correct

Answer B: Validly revoked the counteroffer, and there is no binding agreement

A counteroffer may be revoked by the offeror at any time before acceptance is communicated. Upon revocation, there is no binding agreement.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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