What happens to the original offer when a counteroffer is made?

When a counteroffer is made, the original offer is automatically voided. This principle is fundamental in contract law and real estate transactions. A counteroffer indicates that the original terms are not acceptable, and instead, a new set of terms is being proposed. This action essentially rejects the original offer since the responding party does not agree to its conditions.

Once a counteroffer is presented, the first offer can no longer be accepted, as it is effectively nullified. This ensures clarity in negotiations, as both parties move forward with the new terms instead of being able to revert back to the previous offer. In real estate, this process is crucial for maintaining a clear understanding of what terms are being discussed and agreed upon.