A buyer makes an offer on a property in Chestermere. The seller reviews the offer and makes two changes: increasing the purchase price by $5,000 and shortening the possession date by one week. The seller then initials these changes and signs the contract. What is the legal status of the original offer and the seller's actions?

Question: A buyer makes an offer on a property in Chestermere. The seller reviews the offer and makes two changes: increasing the purchase price by $5,000 and shortening the possession date by one week. The seller then initials these changes and signs the contract. What is the legal status of the original offer and the seller's actions?

Answer options:

• The seller has accepted the buyer's original offer with minor adjustments. ✅ The seller's changes constitute a counter-offer, terminating the original offer.
• The original offer is still open, and the seller has provided a new offer.
• The contract is now binding, subject to the buyer agreeing to the changes.

Correct answer: The seller's changes constitute a counter-offer, terminating the original offer.

Explanation: Any alteration to the terms of an offer, no matter how minor, by the offeree constitutes a rejection of the original offer and the creation of a new offer, known as a counter-offer. This terminates the original offer, as per general contract law principles.