Contracts

In Louisiana, when a buyer's offer is rejected by the seller who then submits a counteroffer, the legal effect is that:

AThe original offer remains open for acceptance
BThe original offer is terminated and the counteroffer is a new offer requiring acceptance by the buyer✓ Correct
CBoth offers are binding simultaneously
DThe buyer must accept or reject within 24 hours by law

Explanation

A counteroffer is a rejection of the original offer combined with a new offer. Under Louisiana contract law, the original offer is terminated by the counteroffer.

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