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The seller has given a buyer a counteroffer with 3 days to accept. In the interim, the seller receives a better offer. What can the seller do?

1) The seller may accept the new counter offer without any notice to the first offer
2) The seller may withdraw the counter offer and then accept the new offer
3) The seller may not accept the second offer
4) The seller has to wait until the resolution of the counter offer before accepting the better offer

1 Answer

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Final answer:

The seller is generally expected to honor the counteroffer period unless it states otherwise. They may withdraw the counteroffer to accept a better offer, but they should be aware of potential legal and ethical implications. The exact action depends on contract terms and local laws.

Step-by-step explanation:

When a seller has given a buyer a counteroffer with a specific time frame to accept, typically, they are expected to honor that period unless the counteroffer explicitly states it can be revoked. If the seller receives a better offer within those 3 days, they have several options, but ethical and sometimes legal obligations may dictate the appropriate course of action. Generally speaking:

  • The seller cannot simply accept the new offer without any notice to the first buyer if the counteroffer period is still active. This would be against most contractual norms.
  • The seller may withdraw the counteroffer, but depending on the jurisdiction and the terms of the counteroffer, they may need to provide notice to the first buyer and could potentially be liable for any consequences of withdrawing the offer.
  • It's possible that the terms of the counteroffer or local laws prevent the seller from accepting a second offer before the first counteroffer is resolved.
  • Last, the seller may indeed have to wait until the resolution of the counteroffer before accepting the better offer, especially if the counteroffer is legally binding.

The specific course of action would depend on the terms of the contract, local laws, and the ethical standards the seller chooses to follow.

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