Contracts

A counteroffer by the seller:

AAccepts the buyer's offer and creates a binding contract
BRejects the original offer and creates a new offer that the buyer may accept or reject✓ Correct
CExtends the time for the buyer to accept the original offer
DAllows the seller to accept the original offer at a later date

Explanation

When a seller makes a counteroffer, the original offer is rejected and a new offer is made. The buyer may then accept, reject, or counter the seller's counteroffer. The original offer is extinguished and cannot be revived unless the seller makes an identical new offer.

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