Question 14

The original offer is void.

When a buyer submits an offer to purchase and the seller counters that offer, the original offer is terminated and becomes void if the buyer does not accept the counteroffer.

A) enforceable

This option is incorrect because once the seller has countered the original offer, the initial offer is no longer enforceable. The act of countering creates a new offer that replaces the original one.

B) void

This option is correct as the original offer becomes void when the seller issues a counteroffer. The counteroffer effectively cancels the original offer, meaning it cannot be accepted thereafter.

C) valid

This option is incorrect because a valid offer refers to an offer that is still open for acceptance. Since the seller’s counteroffer has replaced the original offer, the original is no longer valid.

D) voidable

This option is incorrect because a voidable contract is one that is valid until it is declared void by one of the parties. In this case, the original offer is void outright as it cannot be accepted after a counteroffer is made.

Conclusion

The correct answer is that the original offer is void because the seller's counteroffer nullifies it. The other options fail to recognize that a counteroffer terminates the initial offer, making it impossible for the buyer to accept it after that point. Therefore, understanding the implications of counteroffers is crucial in contract law.