ContractsIntermediateCalifornia Exam

When a buyer makes an offer and the seller changes one term of the offer and sends it back, this is legally a:

AAcceptance
BRejection and counterofferCorrect
CConditional acceptance
DModification

Why Rejection and counteroffer Is Correct

Answer B: Rejection and counteroffer

Any change to an offer — even a minor one — constitutes a rejection of the original offer and a new counteroffer. The original offeror is then free to accept, reject, or counter the new proposal.

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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