ContractsIntermediateArizona Exam

An Arizona buyer makes an offer on a home. The seller responds with different terms. This seller response is legally:

AAn acceptance that binds both parties
BA counteroffer that terminates the original offerCorrect
CA rejection that must be in writing to be effective
DA modification that the buyer must accept within 24 hours

Why A counteroffer that terminates the original offer Is Correct

Answer B: A counteroffer that terminates the original offer

A counteroffer constitutes a rejection of the original offer and creates a new offer. The original offer is terminated, and the buyer is free to accept, reject, or counter the new terms.

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.

People Also Study

Practice More Arizona Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →