Contracts

When a buyer makes a counteroffer to a seller's counter-counteroffer, what happens to the original offer?

AThe original offer is revived
BAll prior offers and counteroffers are extinguished; only the latest counteroffer is active✓ Correct
CThe seller must choose between the original offer and the counter-counteroffer
DThe buyer must pay a penalty for making multiple offers

Explanation

Each counteroffer extinguishes the previous offer. Once a counteroffer is made, the prior offer no longer exists. Both parties are only bound by the terms of the most current offer or counteroffer, until acceptance creates a binding contract.

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