What is a "counteroffer"?

A counteroffer is defined as a response to an original offer that includes altered terms. When a party makes a counteroffer, they are essentially rejecting the initial offer and proposing new conditions or terms. This process alters the original negotiation and indicates that the responding party is not willing to accept the offer as it stands. By proposing different terms, the counteroffer shifts the focus of the negotiation and opens the door for further discussions.

In this context, it is important to note that a counteroffer signifies a change in the terms rather than simple acceptance, which distinguishes it from other options, such as a direct acceptance of the initial offer or a mere rejection without any new proposals.