A buyer makes an offer on a home that is 90% of the asking price. The seller rejects that offer, but will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is

Rationale

The original offer is null and void.

When a seller rejects an offer, the original offer ceases to exist and cannot be accepted later. In this case, the buyer's original offer of 90% is terminated by the seller's rejection, making it null and void.

A (rescinded) YOUR ANSWER

Rescinding an offer refers to the act of withdrawing it before it is accepted. In this scenario, the buyer did not withdraw the offer; instead, it was rejected by the seller, which automatically nullifies it. Therefore, the term "rescinded" does not apply as the buyer's offer was not voluntarily withdrawn.

B (null and void) CORRECT

The term "null and void" accurately describes the situation where the seller has rejected the buyer's offer. Once rejected, the offer can no longer be accepted and loses its legal effect, making it null and void.

C (irrevocable) YOUR ANSWER

An irrevocable offer cannot be withdrawn by the offeror for a specified period, which is not applicable here. Since the seller rejected the buyer's offer, it is no longer in existence, thus it cannot be considered irrevocable as it is effectively voided.

D (binding) YOUR ANSWER

A binding offer is one that, once accepted, creates a legal obligation for both parties. However, since the seller rejected the buyer's offer, it is not binding. A binding agreement only exists when both parties have reached mutual consent, which did not occur in this case.

Conclusion

In summary, when an offer is rejected, it becomes null and void, meaning it can no longer be accepted or enforced. The buyer's initial offer of 90% was effectively terminated by the seller's rejection, and therefore, it cannot be revived or considered valid, aligning with standard contract principles.

A buyer makes an offer on a home that is 90% of the asking price. The seller rejects that offer, but will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is

The original offer is null and void.

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