Contracts

An Iowa buyer makes an offer of $185,000. The seller counters at $192,000. The buyer then offers $189,000. At this point:

AThe original offer of $185,000 is still on the table
BThe seller's counteroffer of $192,000 is still binding
CThe buyer's second offer of $189,000 is the only active offer✓ Correct
DBoth the seller's counteroffer and the buyer's latest offer are active

Explanation

Each counteroffer terminates the previous offer. Once the buyer made a new offer of $189,000 (a counter to the seller's counter), the seller's $192,000 counteroffer was terminated. Only the $189,000 offer is currently active.

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