What is the effect of a seller's acceptance of a counteroffer?

What is the effect of a seller's acceptance of a counteroffer?

• A. The original offer remains valid
• B. The counteroffer is nullified
• C. The pricing terms are automatically adjusted
• D. The seller loses all negotiating power

Answer: (B)

When a seller accepts a counteroffer, it signifies a shift in the negotiation process. The acceptance of a counteroffer nullifies the original offer made by the other party. This is a fundamental principle in contract law known as "counteroffer." When one party makes a counteroffer, it essentially rejects the initial offer and proposes new terms. Thus, the acceptance of the counteroffer means there is no longer any validity to the original offer; it cannot be accepted afterward because it has been replaced by the counteroffer. This creates a clear pathway for the negotiation to move forward under the terms outlined in the counteroffer, as it represents a new proposal that the other party may either accept or reject. Other options do not accurately represent the implications of a counteroffer. The original offer does not stay valid upon acceptance of a counteroffer; pricing terms are only changed if the new terms specify that; and the seller maintains negotiating power because they can still negotiate further after receiving a counteroffer.

When a seller accepts a counteroffer, it signifies a shift in the negotiation process. The acceptance of a counteroffer nullifies the original offer made by the other party. This is a fundamental principle in contract law known as "counteroffer." When one party makes a counteroffer, it essentially rejects the initial offer and proposes new terms.

Thus, the acceptance of the counteroffer means there is no longer any validity to the original offer; it cannot be accepted afterward because it has been replaced by the counteroffer. This creates a clear pathway for the negotiation to move forward under the terms outlined in the counteroffer, as it represents a new proposal that the other party may either accept or reject.

Other options do not accurately represent the implications of a counteroffer. The original offer does not stay valid upon acceptance of a counteroffer; pricing terms are only changed if the new terms specify that; and the seller maintains negotiating power because they can still negotiate further after receiving a counteroffer.