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Alberta Real Estate Licensing Exam Practice · Question

A seller receives an offer at 10:00 AM on Monday, which states it is open for acceptance until 5:00 PM on Tuesday. The seller decides to make a counteroffer at 1:00 PM on Monday. What is the effect of the seller's counteroffer on the original offer?

According to contract law principles applied to real estate, a counteroffer constitutes a new offer and, upon communication to the original offeror (the buyer),

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Question: A seller receives an offer at 10:00 AM on Monday, which states it is open for acceptance until 5:00 PM on Tuesday. The seller decides to make a counteroffer at 1:00 PM on Monday. What is the effect of the seller's counteroffer on the original offer?

Answer options: ✅ The counteroffer automatically terminates the original offer.

  • The original offer remains open until 5:00 PM on Tuesday, unless explicitly withdrawn.
  • The buyer must accept the counteroffer within 24 hours, regardless of the original offer's acceptance deadline.
  • The seller is obligated to accept the original offer if the counteroffer is rejected.

Correct answer: The counteroffer automatically terminates the original offer.

Explanation: According to contract law principles applied to real estate, a counteroffer constitutes a new offer and, upon communication to the original offeror (the buyer), it automatically rejects and terminates the original offer.

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