Contracts

A Hawaii buyer submits an offer with a 3-day acceptance deadline. On day 2, the seller makes a counteroffer. What is the legal effect?

AThe original offer is still valid for 1 more day
BThe buyer's offer is terminated and the counteroffer is a new offer✓ Correct
CBoth the original offer and counteroffer are valid simultaneously
DThe buyer is obligated to accept the counteroffer

Explanation

A counteroffer terminates the original offer and constitutes a new offer. The original offeror (buyer) is under no obligation to accept.

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