Cherokee Rose Design & Build LLC hired Muilenburg, Inc., to install underground utilities in a subdivision. After the work was done, Muilenburg sued Cherokee, alleging it was not paid. Cherokee’s lawyer sent a proposed settlement to Muilenburg. It stated: Cherokee would sell three lots to Muilenburg for $75,000; the parties would fully release each other; Muilenburg would dismiss the lawsuit; each party would bear its own costs.” Muilenburg’s lawyer responded, writing, “[m]y client has authorized me to convey its acceptance of the settlement agreement” but Cherokee would have “to convey marketable title by way of a warranty deed” and Muilenburg would like Cherokee to provide a title insurance commitment. After Rose’s lawyer prepared releases, Muilenburg realized it had to pay $75,000 for the lots and alleged it had not made an unconditional acceptance because of the requirement of marketable title and request for a title insurance commitment. Was Muilenburg’s response a counteroffer?

Answer rating: 100% (QA)

Yes Muilenburgs response to Cherokees proposed settlement was a counteroffer A counteroffer is a rej... View the full answer