When a seller makes a counter-offer what is the essence of such an action?

The correct answer is The seller rejects the buyer's offer.

Explanation:

A counter offer more often than not expresses that the seller will acknowledge the buyer's offer. Generally, the seller is dismissing the buyer's unique offer by making a counter offer.

One thought on the issue of offer and acknowledgment is whether the offer or counteroffer was in truth acknowledged before its expiration. A counteroffer is a dismissal and another offer.  

A seller who is in receipt of an offer from a buyer can't at first counteroffer, and if that fails to work, then accept the original offer. This is so in light of the fact that, by law, a counteroffer is a dismissal of the main offer and the creation of another offer. The old offer from the buyer is dismissed and "gone" as of the creation of a counteroffer by the seller.

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