Offer, counteroffer, and acceptance

Follow the current proposal

An offer is a definite proposal to contract on stated terms. The offeror makes it; the offeree receives it. A listing price generally invites offers rather than committing the seller to accept a matching bid.

Acceptance must unequivocally match the offer and satisfy its requirements. Price agreement alone is insufficient if the parties disagree about closing or another term. Silence generally is not acceptance, nor is an uncommunicated private decision. Real estate sale agreements generally must satisfy applicable writing and signature requirements to be enforceable. Specific communication rules depend on the offer and applicable law; use the facts given rather than assuming a universal delivery rule.

Changed terms create a new decision

A counteroffer changes the proposed terms instead of accepting them. Ordinarily it rejects the original offer and creates a new one, reversing the offeror and offeree roles.

A buyer offers $300,000 with a June 1 closing. The seller proposes $310,000 with that closing date. The seller is now the offeror. If the buyer rejects this counteroffer, the seller cannot unilaterally revive the original $300,000 offer. The buyer must renew it or otherwise assent to a new agreement.

An inquiry is different: asking whether a later closing would be possible, while keeping the offer under consideration, need not reject it. Conditioning agreement on the later date is a counteroffer.

Track termination and formation

Before acceptance, an ordinary offer can end through rejection, counteroffer, expiration, or effective revocation. Revocation is the offeror's withdrawal, communicated as required before effective acceptance. An acceptance deadline alone does not necessarily prevent earlier revocation. A valid option supported by consideration can preserve the right to accept during its term; distinguish this from a termination option in an already formed purchase contract.

After formation, a proposed change is an amendment, requiring agreement; it does not erase the existing contract. For exam timelines, identify the current offer, compare all terms, check the deadline, and determine what was communicated.