Counteroffer

In one sentence

A response to an offer that changes one or more terms instead of accepting the original offer.

Plain English

A counteroffer is what happens when someone receives an offer but doesn't simply say yes. Instead, they propose different terms—maybe a lower price, different delivery date, or other changes. Legally, a counteroffer rejects the original offer and creates a new offer that the first party can accept or reject.

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Example

A buyer offers to purchase a house for $300,000. The seller responds with a counteroffer of $325,000 and requests that the buyer cover closing costs. The buyer's original offer is now dead, and the seller has made a new offer that the buyer can accept, reject, or counter again.

Used in a sentence

“When the vendor rejected the initial price but proposed a counteroffer at a lower rate, the parties began negotiating in earnest.”

Related terms

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Offeror

The person who makes an offer to enter into a contract.

Firm Offer

A written promise by a merchant to keep an offer open for a set time, which can't be revoked.

Legality of Object

The requirement that a contract's purpose and subject matter must be legal and not against public policy.

Writing Requirement

A legal rule that certain contracts or agreements must be documented in writing to be valid.

Offer

A proposal to enter into a binding agreement on specific terms.

Consideration

Something of value exchanged by each party to make a contract binding.

Offeree

The person who receives an offer and has the power to accept or reject it.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.