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/Glossary/What is a Counter offer?

What is a Counter offer?

A Counter Offer: Modifying Terms for Mutual Agreement

A counter offer modifies terms or prices proposed in an original offer, representing the second party’s desired conditions. This back-and-forth negotiation tool refines aspects like payment timelines, total amounts, or warranties. Each counter effectively rejects the prior proposition yet keeps dialogue open, inching toward a mutually beneficial agreement.

Key Points:

  • Negotiation Cycle: Can continue with multiple counters until consensus or impasse emerges.
  • Shifting Responsibilities: May revise who covers certain costs or handles specific tasks.
  • Timelines: Often have validity windows, pushing parties to respond within set deadlines.
  • Strategic Logic: Encourages compromise or creative solutions unconsidered initially.

Counter offers help shape final outcomes to better satisfy both sides. However, repeated or extreme counters risk losing momentum, so balanced approaches often yield productive settlements.

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