A seller places a property on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase 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.

Once the seller rejected the buyer's initial offer, it became null and void, meaning it is no longer valid and cannot be accepted. The rejection of an offer terminates that offer, and any subsequent negotiations or counteroffers do not reinstate the original offer.

A (rescinded.) CORRECT

An offer is rescinded when the offeror withdraws it before it is accepted. In this scenario, the buyer's offer was not withdrawn by the buyer; rather, it was rejected by the seller. Therefore, the term "rescinded" does not apply here, as the offer was never taken back by the buyer.

B (null and void.) YOUR ANSWER

This option correctly identifies the status of the original offer. The seller's rejection of the buyer's offer means that it has no legal effect and cannot be accepted by the seller. Once rejected, the original offer is effectively terminated and is considered null and void.

C (irrevocable.) YOUR ANSWER

An irrevocable offer cannot be withdrawn or changed once made, typically due to terms specified by the offeror. In this case, the seller's rejection of the offer indicates that it is not irrevocable. The ability of the seller to reject the offer demonstrates that it is not binding and can be dismissed.

D (binding.) YOUR ANSWER

For an offer to be binding, it must be accepted by the offeree before it is revoked or rejected. Since the seller rejected the buyer's offer, it cannot be considered binding. The lack of acceptance by the seller negates any binding nature of the original offer.

Conclusion

In contract law, once an offer is rejected, it is rendered null and void, meaning it cannot be accepted or reinstated. The buyer's original offer was rejected by the seller, leading to its termination. Therefore, the offer is classified as null and void, emphasizing the importance of acceptance in forming a binding agreement.

The original offer is null and void.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test