Tennessee Real Estate License Exam Practice Question
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
Correct Answer: B
Rationale: The original offer is null and void because it was rejected by the seller, which means it is no longer valid or enforceable. Once an offer is rejected, it cannot be accepted later unless a new offer is made.
Option A, rescinded, suggests that the offer was withdrawn, which is incorrect as the buyer did not withdraw their offer.
Option C, irrevocable, implies that the offer cannot be revoked, but since it was rejected, it is no longer in effect.
Option D, binding, would mean that the offer had legal force, but rejection negates that binding nature. Thus, the original offer holds no legal standing after being rejected.
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