ContractsIntermediateCalifornia Exam

What happens when a buyer makes a counteroffer to the seller's counteroffer?

AThe original offer is reinstated
BThe first counteroffer is automatically accepted
CThe most recent counteroffer controls; earlier offers are voidCorrect
DBoth parties must start over with a new contract

Why The most recent counteroffer controls; earlier offers are void Is Correct

Answer C: The most recent counteroffer controls; earlier offers are void

Each counteroffer voids all previous offers. The most recent counteroffer is the only one on the table until accepted, rejected, or countered again.

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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