Definition - What does Counteroffer mean?
Counteroffer is a term which is used in contract law to define the rejection of a proposal or an offer which subsequently results in another offer of a similar nature with different terms. Usually, a counteroffer makes the original offer obsolete, but it should remain open in case counteroffer provides that it will not constitute or form rejection.
Justipedia explains Counteroffer
This can be explained with the help of an example. Consider a buyer making an offer of $50,000 to buy a car, but the seller rejects the offer with a reply that he wants to sell it for $53,000. The seller in this case had a made a counteroffer to sell the car at a higher price.