Contracts

A Vermont buyer makes an offer to purchase a home. The seller responds with a 'counter-offer' at a higher price. The buyer's original offer is now:

AStill binding on the buyer
BExtinguished — the seller's counter-offer rejected the buyer's offer and created a new offer✓ Correct
CAutomatically accepted if the buyer does not respond
DConverted to a backup offer

Explanation

A counter-offer is a rejection of the original offer and constitutes a new offer from the counter-offeror. Once the seller counter-offers, the buyer's original offer is terminated and the buyer may accept, reject, or counter the seller's counter-offer.

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