65. A seller places a property on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase that is 90% of the asking price. The seller rejects that offer, but will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is
Answer: A
The original offer is rescinded.
When the seller rejected the buyer's initial offer, that offer was effectively rescinded, meaning it is no longer valid. The buyer's original proposal to purchase the property at 90% of the asking price is no longer actionable after the seller's refusal.
A) rescinded.
This option is correct because once the seller rejected the buyer's offer, the buyer's offer was no longer valid or capable of being accepted. In contract law, a rejection of an offer terminates that offer, making it rescinded.
B) null and void.
This option is incorrect because while the original offer is no longer valid after rejection, the term "null and void" typically refers to something that was never valid in the first place. The offer was valid until the seller explicitly rejected it.
C) irrevocable.
This option is incorrect as well; an irrevocable offer cannot be revoked or rejected. In this scenario, the seller's rejection demonstrates that the offer was not irrevocable, as it was ultimately terminated by the seller's actions.
D) binding.
This option is incorrect because a binding offer must be accepted to create a contract. Since the seller rejected the original offer, it is no longer binding on either party.
Conclusion
The correct answer, "rescinded," accurately reflects the legal outcome of the seller's rejection of the buyer's initial offer. All other options fail because they misrepresent the status of the offer after the seller's actions, demonstrating a fundamental understanding of contract law principles regarding offers and rejections.