Contracts
In California, a counteroffer by the seller has what legal effect on the buyer's original offer?
AIt keeps the original offer open while adding new terms
BIt is a rejection of the original offer and a new offer by the seller✓ Correct
CIt extends the buyer's offer for an additional 3 business days
DIt creates a binding contract on the original terms
Explanation
A counteroffer is legally a rejection of the original offer and constitutes a new offer by the seller. The original buyer's offer is extinguished, and the buyer can accept, reject, or counter the seller's counteroffer.
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