ContractsIntermediateArizona Exam

An Arizona buyer submits a written offer. The seller makes material changes to the offer and signs it. This is legally considered:

AAn acceptance that binds both parties
BA counteroffer that terminates the original offerCorrect
CA rejection with no further obligations
DA conditional acceptance pending buyer approval

Why A counteroffer that terminates the original offer Is Correct

Answer B: A counteroffer that terminates the original offer

When a seller makes material changes to a buyer's offer and signs it, the original offer is terminated and what the seller signed becomes a counteroffer. The buyer may accept, reject, or counter this new offer.

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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