Contracts
A Texas buyer makes an offer and the seller responds with a counteroffer changing the price. The buyer's original offer is now:
AStill valid and the buyer can accept the original terms
BRejected and terminated by the counteroffer✓ Correct
COn hold until the option period expires
DAutomatically converted to a backup offer
Explanation
Under contract law, a counteroffer constitutes a rejection of the original offer and creates a new offer. The buyer's original offer is terminated and cannot be accepted by the seller. The buyer may accept, reject, or counter the seller's counteroffer.
Related Texas Contracts Questions
- A Texas buyer who has signed a contract and paid an option fee decides to exercise their right to terminate on the last day of the option period. To validly exercise the right, the buyer must:
- In Texas, a contract for the sale of real estate must be in writing to be enforceable under the:
- In Texas, which addendum is used when a buyer's purchase is contingent on the sale of their current home?
- The TREC Addendum for Property Located Seaward of the Gulf Intracoastal Waterway is required for properties in certain coastal areas of Texas. This form primarily addresses:
- Under the TREC contract's environmental paragraph, the seller represents that they have no knowledge of conditions on the property that would violate laws. If this representation proves false, the buyer's remedy is:
- The TREC One to Four Family Contract requires the buyer to deposit earnest money no later than:
- In a Texas residential contract, the option period gives the buyer the right to:
- Under the Texas One to Four Family Residential Contract, the Third Party Financing Addendum is used when:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →