ContractsIntermediateAlaska Exam

A buyer makes an offer on a property and the seller responds with different terms. This seller response is best described as:

ASimply an acceptance with conditions attached, when in fact responding with different terms actually constitutes a counteroffer that rejects the original offer
BA counteroffer that terminates the original offerCorrect
CA binding contract pending buyer agreement
DA conditional acceptance binding on both parties

Why A counteroffer that terminates the original offer Is Correct

Answer B: A counteroffer that terminates the original offer

When a seller changes the terms of an offer, the seller's response is a counteroffer, which simultaneously rejects the original offer and proposes new terms. The original offer is terminated and the buyer now decides whether to accept the counteroffer.

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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