Contracts
In NH, a 'counteroffer' legally has what effect on the original offer?
AThe original offer remains open for 72 hours
BThe original offer is rejected; the counteroffer is a new offer from the seller✓ Correct
CBoth the original offer and counteroffer remain open simultaneously
DThe counteroffer extends the original offer's acceptance deadline
Explanation
Under common law, a counteroffer constitutes a rejection of the original offer and substitutes a new offer from the counterofferor. Once a counteroffer is made, the original offer is extinguished and cannot be accepted unless the seller withdraws the counteroffer and the original offeror re-submits.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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