Contracts

In Michigan, a counteroffer legally:

AKeeps the original offer alive and adds new terms
BRejects the original offer and creates a new offer✓ Correct
CBinds the original offeror to the new terms automatically
DExtends the acceptance deadline of the original offer

Explanation

A counteroffer constitutes a rejection of the original offer and creates a new offer with different terms. The original offer is extinguished and cannot be accepted after a counteroffer is made.

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