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- The original offer remains open until 5:00 PM on Tuesday, unless explicitly withdrawn.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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