Sarah
offers to sell her car to Mike for $5,000. Mike responds, "I'll take it
for $4,500." What is the legal effect of Mike's response?

Question

Accepted Answer

Mike
has made a counteroffer, which terminates Sarah's original offer

Answer

Mike
has accepted Sarah's offer and a contract is formed for $5,000

Answer

Mike
has rejected Sarah's offer, but Sarah's original offer remains open for
acceptance

Answer

Mike
has accepted Sarah's offer conditionally, and Sarah must respond within a
reasonable time

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