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counteroffer

A counteroffer functions as both a rejection of an offer  to enter into a contract , as well as a new offer that materially changes the terms of the original offer. Because a counteroffer serves as a rejection, it completely voids  the original offer. Thus, the original offer can no longer be accepted .

However, note that added modifications do not necessarily mean that a party made a counteroffer. Instead, these added modifications may create a conditional acceptance, depending on the changed terms and the applicable law . Alternatively, requests for modifications may not constitute a new offer at all but may instead be mere negotiation%20The%20process%20of%20parties,attempt%20to%20reach%20an%20agreement.) .

Related terms:

• Contracts

• Consideration

• Offer and acceptance

[Last reviewed in August of 2022 by the Wex Definitions Team
]

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