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Pass Georgia

Contracts

Counteroffer

A response that changes any term of an offer, which rejects the original offer and creates a new one.

How the exam uses counteroffer

Candidates treat a small change as an acceptance with a tweak. Any change kills the original offer entirely.

What a question on this looks like

A seller accepts a buyer's offer but changes the closing date before signing and returns it. What has the seller created?

Answer: A counteroffer Any change to the terms of an offer rejects the original and creates a counteroffer. The buyer is now free to accept, reject or counter again, and the original offer is dead.

Drill this in context at practice by topic, or browse the full glossary.