Counter Offer Legal Meaning and Definition

Here is a simplified definition of the legal term Counter Offer.

Counter Offer (noun):

A counter offer is a proposal made as an alternative or in reaction to an initial offer. It usually includes changes or modifications to the original proposition and in the process of doing so, it effectively rejects the original offer, unless it is specified otherwise within the counter offer. For instance, if someone offers to sell a television for $200, but the potential buyer suggests a price of $150 instead, this new suggestion is a counter offer, and it cancels the seller's initial price of $200.