10. A buyer offers 90 % of asking price; the seller rejects but counters at 95 %. The buyer rejects the counter. The original 90 % offer is now
Answer: B
The original 90% offer is now null and void.
When a seller counters an offer, the initial offer effectively becomes null and void, as the counteroffer constitutes a rejection of the original proposal.
A) rescinded.
This option is incorrect because "rescinded" implies that the offer was withdrawn by the buyer. In this scenario, the buyer did not withdraw the offer; instead, the seller's counteroffer rejected it.
B) null and void.
This option is correct. The original 90% offer is now null and void because the seller's counteroffer of 95% effectively rejected the initial offer, terminating it.
C) irrevocable.
This choice is incorrect as "irrevocable" suggests that the original offer cannot be changed or retracted. However, since the seller countered, the original offer is no longer valid and can be considered revoked.
D) binding.
This option is also incorrect. A binding offer implies that the terms of the original offer are still in effect, but since the seller made a counteroffer, the original offer is no longer binding.
Conclusion
The original 90% offer is definitively null and void because the counteroffer from the seller rejected it and created a new negotiation. All other options incorrectly describe the status of the offer following the counter, reinforcing that B is the only accurate assessment of the situation.