Contracts

A Virginia buyer submits an offer with a 48-hour acceptance deadline. The seller makes a counteroffer. What has legally occurred?

AThe original offer remains open for 48 hours
BThe original offer is rejected and the counteroffer is a new offer✓ Correct
CBoth offers are simultaneously binding
DThe seller has accepted with conditions

Explanation

Under contract law, a counteroffer legally rejects the original offer and substitutes a new offer. The original buyer's offer is no longer open once a counteroffer is made.

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