Which statement describes what occurs if the seller makes changes to the buyer's offer?

Which statement describes what occurs if the seller makes changes to the buyer's offer?

• A. A counteroffer is created.
• B. The original offer remains valid.
• C. The contract is formed automatically.
• D. The buyer must accept as is.

Answer: (A)

When the seller makes changes to the buyer’s offer, it creates a counteroffer. That means the seller is proposing new terms, which ends the buyer’s original offer and starts a fresh negotiation with new terms. For a contract to form, the buyer would have to accept this counteroffer. The original offer isn’t still valid once a counteroffer is made, and contracts aren’t automatic—mutual agreement on the revised terms is needed. The buyer isn’t obligated to accept as-is; they can accept the counteroffer, reject it, or propose another change.

When the seller makes changes to the buyer’s offer, it creates a counteroffer. That means the seller is proposing new terms, which ends the buyer’s original offer and starts a fresh negotiation with new terms. For a contract to form, the buyer would have to accept this counteroffer. The original offer isn’t still valid once a counteroffer is made, and contracts aren’t automatic—mutual agreement on the revised terms is needed. The buyer isn’t obligated to accept as-is; they can accept the counteroffer, reject it, or propose another change.