Contracts
A New Mexico seller's counteroffer specifying a new price of $310,000 in response to an offer of $295,000 creates what legal result for the original offer?
AThe original offer of $295,000 remains open
BThe original offer is void; the buyer may accept, reject, or counter the new offer✓ Correct
CBoth offers are pending simultaneously
DThe original offer is automatically increased to $310,000
Explanation
A counteroffer legally terminates the original offer. The buyer is no longer bound by the original $295,000 offer and is free to accept the $310,000 counteroffer, reject it, or submit a new counter.
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