Contracts
In New Mexico, a seller's counter-offer includes a clause that it must be accepted 'by noon tomorrow.' This is known as a(n):
ALiquidated damages clause
BTime limit for acceptance (deadline for offeree to accept)✓ Correct
CEscape clause
DAutomatic renewal clause
Explanation
An offer or counteroffer may include a deadline for acceptance. If not accepted by the specified time, the offer lapses automatically—the offeror is no longer bound and the offeree loses the right to accept.
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