A buyer offers 90 % of asking price; the seller rejects but counters at 95 %. The buyer rejects the counter. The original 90 % offer is now

Rationale

The original 90% offer is now null and void.

Once the seller counters the buyer's initial offer, the original offer is effectively terminated and cannot be accepted. This means that the buyer's initial offer of 90% is no longer valid since it has been replaced by the counteroffer.

A (rescinded.) YOUR ANSWER

Rescinding an offer means that the offeror withdraws it before it has been accepted. In this case, the seller did not rescind the original offer; instead, they countered it, which automatically nullifies the original offer without the need for a rescind.

B (null and void.) CORRECT

The original offer becomes null and void upon the seller's counteroffer. When the seller made a counteroffer at 95%, it replaced the original offer of 90%, meaning the buyer can no longer accept that initial offer. Therefore, it is correct to state that the original offer is null and void.

C (irrevocable.) YOUR ANSWER

An irrevocable offer is one that cannot be withdrawn once made. However, in this case, the original offer was effectively withdrawn when the seller made a counteroffer. Thus, the original offer cannot be considered irrevocable.

D (binding.) YOUR ANSWER

For an offer to be binding, it must be accepted by the other party. Since the buyer rejected the counteroffer and the original offer has been nullified, the original offer is not binding at this point.

Conclusion

In contract law, when one party makes a counteroffer, the original offer is terminated and cannot be accepted. Thus, in this scenario, the buyer's original offer of 90% is now null and void after the seller's counteroffer of 95%. Understanding these principles is crucial for navigating negotiations and ensuring clarity in contractual agreements.

A buyer offers 90 % of asking price; the seller rejects but counters at 95 %. The buyer rejects the counter. The original 90 % offer is now

The original 90% offer is now null and void.

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