Contracts

In Oregon, a counteroffer made by the seller in response to a buyer's offer has what legal effect on the original offer?

AIt extends the original offer by 10 days
BIt rejects the original offer and creates a new offer✓ Correct
CThe original offer remains valid alongside the counteroffer
DIt converts the original offer into a binding contract

Explanation

Under Oregon contract law, when a seller issues a counteroffer, it legally rejects the buyer's original offer and substitutes a new offer with different terms. The buyer's original offer is extinguished, and the buyer is free to accept, reject, or counter the new terms. The seller cannot later accept the original offer.

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