Contracts

Under Iowa contract law, what is the effect of a counteroffer on the original offer?

AThe original offer remains open for acceptance
BThe original offer is rejected and terminates✓ Correct
CThe original offer is suspended pending negotiation
DThe original offer becomes binding on both parties

Explanation

A counteroffer is a rejection of the original offer and a new offer. The original offer is terminated, and the original offeror has no obligation to accept the counteroffer.

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