When a counteroffer is made, what happens to the original offer?
A) It remains in effect in all circumstances.
B) It remains in effect only if the original offer specified a designated acceptance time.
C) It remains in effect unless the counteroffer is materially different.
D) It terminates.
E) It terminates, but only if the counteroffer specifically states that the original offer is unacceptable.

Question

Quizplus · Accepted Answer

When a counteroffer is made, it effectively terminates the original offer. This means that the original offer is no longer valid and cannot be accepted, as the counteroffer represents a new proposal that must be accepted for a contract to be formed.

When a Counteroffer Is Made, What Happens to the Original