Contracts

In Tennessee, what is the legal effect of a counteroffer on the original offer?

AThe original offer remains open for 3 days
BThe original offer is terminated and the counteroffer becomes a new offer✓ Correct
CBoth offers remain open simultaneously
DThe original offer is suspended pending acceptance of the counteroffer

Explanation

A counteroffer legally terminates the original offer and constitutes a new offer. The original offeror is under no obligation to accept the counteroffer.

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