Contracts

A counteroffer in Iowa real estate has which legal effect on the original offer?

AIt extends the original offer's deadline
BIt rejects the original offer and creates a new offer✓ Correct
CIt creates a binding contract pending acceptance
DIt requires IREC approval to be valid

Explanation

A counteroffer legally rejects the original offer and substitutes a new offer with changed terms. The original offeror becomes the offeree and may accept, reject, or counter again.

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