Contracts

A buyer submits a written offer on a Pennsylvania property. The seller counter-offers at a higher price. The buyer then decides to withdraw before responding to the counter-offer. Which statement is correct?

AThe buyer is bound by the original offer until closing
BThe seller's counter-offer was a rejection of the buyer's offer, so the buyer is free to withdraw✓ Correct
CThe buyer must pay the seller's transaction costs as a penalty
DThe seller may sue for specific performance

Explanation

A counter-offer legally rejects the original offer and creates a new offer. Once the seller counter-offers, the buyer's original offer is extinguished.

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