If the seller decides to counteroffer, what does that mean?

• A. They are accepting the buyer's offer
• B. They are declining the buyer's offer and beginning a negotiation process
• C. They are immediately signing the agreement
• D. They are terminating the agreement

Answer: (B)

Counteroffer means the seller is not accepting the buyer's terms as stated and is proposing new terms instead. It effectively rejects the original offer and opens the door to negotiation on those revised terms. The original offer is no longer on the table once a counteroffer is made, and the buyer then has the option to accept the new terms, reject them, or propose another counteroffer. This reflects how negotiations proceed in practice: the seller signals willingness to negotiate, but only on different terms.