Contracts
What is the legal effect of a counteroffer in an Illinois real estate transaction?
AIt extends the original offer by 30 days
BIt voids the original offer and creates a new offer that the original offeror may accept or reject✓ Correct
CIt binds the original buyer to the new terms automatically
DIt creates a binding contract that requires attorney approval to modify
Explanation
A counteroffer rejects the original offer and substitutes a new offer with different terms. The original offer is void and cannot be accepted by the original offeror after a counteroffer has been made. The roles are now reversed: the original offeree (who made the counteroffer) becomes the new offeror, and the original offeror becomes the new offeree. Any change in terms—price, closing date, contingencies—creates a counteroffer.
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