ContractsIntermediateArizona Exam

In an Arizona purchase contract, when the buyer submits an offer and the seller changes a term before signing, this creates:

AA binding contract with the modified term
BA counteroffer that the buyer must accept or rejectCorrect
CA void contract
DAn option contract

Why A counteroffer that the buyer must accept or reject Is Correct

Answer B: A counteroffer that the buyer must accept or reject

When a seller modifies any term of the buyer's offer before signing, the original offer is rejected and a new counteroffer is created. The buyer then has the option to accept, reject, or counter.

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.

Key Contracts Terms in This Question

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