ContractsIntermediateArizona Exam

In Arizona, a 'counter-offer' legally:

AExtends the original offer for an additional period
BRejects the original offer and creates a new offer that the original offeror may accept or rejectCorrect
CBinds both parties to negotiate in good faith until agreement is reached
DModifies specific terms while keeping all other original terms automatically intact

Why Rejects the original offer and creates a new offer that the original offeror may accept or reject Is Correct

Answer B: Rejects the original offer and creates a new offer that the original offeror may accept or reject

A counter-offer is a rejection of the original offer and a new offer. Once a counter-offer is made, the original offer is terminated and cannot be 'revived.

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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