Contracts — Core Concepts Practice Questions

A homeowner entered into an oral agreement with a contractor to build a custom detached garage on her property for $75,000. The agreement specified the dimensions, materials, and completion date. After the contractor had excavated the foundation and laid some initial concrete, the homeowner decided to sell her property and repudiated the contract, refusing to allow the contractor to continue. The contractor sued the homeowner for breach of contract.

A farmer offered to sell his prize-winning bull to a rancher for $20,000. The farmer sent a letter stating, "I will sell you my bull for $20,000. If I do not hear from you by Friday, I will assume you accept my offer." The rancher received the letter but did not respond. On Saturday, the farmer delivered the bull to the rancher's property, expecting payment. The rancher refused to accept the bull, stating he never agreed to purchase it.

A 16-year-old high school student purchased a new sports car from a dealership for $30,000, making a down payment of $5,000 and agreeing to monthly installments. The student used the car for six months, driving it daily to school and work. Three months after turning 18, the student decided he no longer wanted the car and informed the dealership he was disaffirming the contract, demanding the return of his $5,000 down payment and all monthly payments made, offering to return the car.