• A counter offer is a response to an offer, meaning that the original offer has been rejected and replaced by another.
  • Counteroffers give the original offeror three options: accept it, reject it, or make another offer and continue negotiations.
  • The parties are not bound by the contract until one accepts the offer of the other party.
  • Counteroffers are common in business negotiations and deals such as real estate deals, car sales, and employment contracts.