Counter Offer

A counter offer occurs when one party receives an offer and responds with a modified proposal rather than simply accepting it. This response alters the original terms, such as price or conditions. For example, if you offer to buy a car for $10,000 and the seller responds with a price of $11,000, this response is a counter offer. It effectively cancels the original offer, and the negotiation continues based on the new terms. Both parties must agree to the final terms for a contract to be established.