Contracts
What is the effect of a counteroffer in a real estate transaction?
AIt extends the original offer's expiration date
BIt binds the buyer to the original offer terms
CIt terminates the original offer and creates a new offer✓ Correct
DIt requires the seller to accept within 24 hours
Explanation
A counteroffer legally terminates the original offer and substitutes a new offer with modified terms. The original offeror is no longer bound by the original offer.
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