Hi . I have this assignment that I need help understanding :

____1.Bill offers to sell his car to Tom for $9,000.Tom replies, "Your price is

too high!I will offer to buy your car for $8,000."Tom's response is:

a.a counteroffer

b.a rejection of the original offer only.

c.the creation of a new offer only.

d.a refusal to deal.

TF2.A contract that is entered into by someone who has been declared by the court

to be mentally incompetent is void.

3. Briefly describe three types of contracts that are illegal. (20 points)

TF4. Children are legally prohibited from entering contracts.

TF5. The party who makes the offer is called the offeror.

6.Bill is cleaning his basement and finds and finds an old vase.Believing the

vase is worthless he sells it for $50.00.Later he discovers that the vase was

really worth $25,000.Bill will be able to:

a.recover $25,000.

b.not recover anything because mistakes in judgment as to value do not

permit you to avoid a contract.

c.rescind the contract.

d.avoid the contract because of his mistake.

7.The freedom of every individual to enter into a contract is:

a.a highly valued principle in American law.

b.an ambiguous idea that relates to contractual intent.

c.a philosophical concept that no longer is valid.

d. society's recognition of the importance of enforcing moral obligations.

8. What is a "covenant not to compete."When will a covenant not to compete be enforceable?Explain fully. (20 points)