Contracts

What is a 'counter offer' and what is its legal effect in Illinois?

AThe seller's acceptance of the buyer's offer with minor modifications that do not change the terms
BA rejection of the original offer and creation of a new offer with different terms; the original offer is terminated✓ Correct
CA response within 24 hours of receiving the original offer
DA legal requirement to respond to all offers in writing

Explanation

A counter offer is a response to an offer that changes any of its terms (price, dates, conditions). Legally, a counter offer rejects the original offer (which cannot then be accepted by the original offeror) and creates a new offer. The original offer is terminated and cannot be revived unless the offering party makes a new identical offer.

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