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National curriculum lesson 83 · Contracts

Offer, Acceptance, Counteroffers, and Electronic Contracting

An offer creates a power of acceptance according to its terms. Acceptance must match the offer, be made by the proper party while the offer remains open, and be communicated or delivered as required. A material change is a counteroffer that rejects the original offer. Rejection, revocation before effective acceptance, lapse, death or incapacity in many situations, and illegality can terminate an offer.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

An offer creates a power of acceptance according to its terms. Acceptance must match the offer, be made by the proper party while the offer remains open, and be communicated or delivered as required. A material change is a counteroffer that rejects the original offer. Rejection, revocation before effective acceptance, lapse, death or incapacity in many situations, and illegality can terminate an offer.
Official syllabus mapping for Offer, Acceptance, Counteroffers, and Electronic Contracting
Roadmap lesson83 of 500
Official syllabus topicOffer, Acceptance, Counteroffers, and Electronic Contracting
Official PSI areaContracts
Published area weight19% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Definite offer

An offer must show present intent and reasonably definite material terms. An invitation to negotiate or advertisement is not automatically an offer.

Mirror-image acceptance

Acceptance must agree to the offered terms. Changing price, closing, included property, contingencies, or other material terms creates a counteroffer.

Communication and delivery

Contract language and applicable law determine when acceptance becomes effective. Signing alone may be insufficient if notice or delivery is required.

Electronic contracting

Electronic records and signatures can form contracts when legal and platform requirements are met. The parties should retain the complete record and audit trail.

Decision rule

Build a timeline and identify the last unchanged offer that was effectively accepted before termination.

Georgia-specific distinction

Georgia forms commonly state how notice and delivery occur. A Georgia licensee should follow the form's exact communication rules and document time-sensitive delivery rather than assume that a signature alone created the contract.

Worked example

Scenario. Seller changes Buyer's $420,000 offer to $430,000 and signs. Buyer never accepts the change.

Reason it through. The price change is material, so Seller made a counteroffer and rejected Buyer's original offer.

Answer. No purchase contract formed on these facts.

Common exam traps

  • Treating a counteroffer as acceptance
  • Assuming silence accepts
  • Ignoring delivery terms
  • Reviving a rejected offer without new assent

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

What does a material change to an offer create?

  1. A. Acceptance
  2. B. Counteroffer
  3. C. Deed
  4. D. Novation automatically
Show answer and explanation →

Answer: B. Counteroffer

A purported acceptance that changes a material term is a counteroffer.

Question 2

Can signing alone always establish acceptance?

  1. A. Yes
  2. B. No, communication or delivery may also be required
  3. C. Only for cash offers
  4. D. Only electronically
Show answer and explanation →

Answer: B. No, communication or delivery may also be required

The offer, contract form, and law determine effective acceptance and notice.

Question 3

Which event normally ends an offer?

  1. A. Effective rejection
  2. B. An appraisal order
  3. C. A showing
  4. D. A title search
Show answer and explanation →

Answer: A. Effective rejection

Rejection terminates the offeree's power to accept the original offer unless it is renewed.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Contract Performance, Breach, and Remedies. Continue to roadmap lesson 84 and build on this decision rule.

Return to the Contracts hub to see every official branch and the complete lesson sequence for this content area.

Offer, Acceptance, Counteroffers, and Electronic Contracting questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Offer, Acceptance, Counteroffers, and Electronic Contracting on the Georgia real estate exam?

Yes. It belongs to PSI's Contracts content area, which is 19% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Offer, Acceptance, Counteroffers, and Electronic Contracting?

Build a timeline and identify the last unchanged offer that was effectively accepted before termination.

What Georgia-specific distinction should I remember?

Georgia forms commonly state how notice and delivery occur. A Georgia licensee should follow the form's exact communication rules and document time-sensitive delivery rather than assume that a signature alone created the contract.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.