Counteroffer

Business, Legal & Accounting Glossary

Definition: Counteroffer




What is the dictionary definition of Counteroffer?

Dictionary Definition


  1. An offer made in reply to an unacceptable offer
  2. To offer as a counteroffer.

n. an offer made in response to a previous offer by the other party during negotiations for a final contract. Making a counter offer automatically rejects the prior offer, and requires an acceptance under the terms of the counter offer or there is no contract. Example: Susan Seller offers to sell her house for $150,000, to be paid in 60 days; Bruce Buyer receives the offer and gives Seller a counter offer of $140,000, payable in 45 days. The original offer is dead, despite the shorter time for payment since the price is lower. Seller then can choose to accept at $140,000, counter again at some compromise price, reject the counter offer, or let it expire.


Full Definition of Counteroffer


The rejection of an offer to buy or sell that simultaneously makes a different offer, changing the terms in some way. For example, if a buyer offers $5000 for a used car, and the seller replies that he wants $5500, the seller has rejected the buyer’s offer of $5000 and made a counteroffer to sell at $5500. The legal significance of a counteroffer is that it completely voids the original offer, so that if the seller decided to sell for $5000 the next day, the buyer would be under no legal obligation to pay that amount for the car.


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Counteroffer. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 22, 2021 https://payrollheaven.com/define/counteroffer/.
Chicago Manual of Style (CMS):
Counteroffer. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/counteroffer/ (accessed: September 22, 2021).
American Psychological Association (APA):
Counteroffer. PayrollHeaven.com. Retrieved September 22, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/counteroffer/

Definition Sources


Definitions for Counteroffer are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 27th April, 2020 | 2 Views.