Contracts
What is a 'counter offer' and what is its legal effect on the original offer?
AIt modifies specific terms while keeping the rest of the original offer; the original offer remains active
BIt is a rejection of the original offer and a new offer; the original offer is extinguished✓ Correct
CIt extends the original offer's expiration date
DIt creates a binding contract on the modified terms immediately
Explanation
A counter offer is both a rejection of the original offer and a new offer on modified terms. The original offer is extinguished and can no longer be accepted. The original offeror becomes the offeree who can now accept, reject, or counter the new offer.
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