Incapacity & Contracts: Contracts with Intoxicated Persons


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question 1 of 3

Ralph, a local real estate agent, was meeting Mary, a first-time home buyer, to discuss an offer on a condo. Mary asked to meet Ralph at The Silver Fox Saloon to discuss the contract. When Ralph arrived, Mary was drinking a glass of Merlot. Ralph requested lemon water, and the negotiations ensued. Mary offered $50,000 above market value for the condo in question. Ralph promptly presented the offer and it was accepted. Several days later, Mary wanted out of the contract, claiming she was intoxicated at the time of the agreement and that Ralph should have known that. What will happen?

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Steven and his buddies were drinking some beers at Gin's Mill on Tuesday evening. As they consumed more beers, the conversation turned to vacation. After several more brews, Steven offered to purchase everyone's airline tickets on his smartphone so long as they promise to repay him when they have the money. The men gathered around as Steven thumbed through the transaction, making several errors along the way. First, he booked the wrong city, then the wrong number of travelers. He even listed everyone as senior citizens. After many attempts, he completed the transaction and the tickets were purchased.

The next day, Steven vaguely remembered this. What might the court look for in this contract for the repayment of the tickets?

2. Manny wanted to purchase Jerome's sports car. Jerome had no intention of selling the car at the time. Manny and Jerome had a few drinks when the conversation turned to the sale of the car. Manny bought several shots of vodka for Jerome and then asked him to sign an agreement to purchase the car for $500.00. What will happen with this contract?

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About This Quiz & Worksheet

Entering into a contract with an intoxicated person presents many legal questions. This quiz and worksheet combination will enable you to better comprehend what can be done about contracts when they are made with someone who is under the influence.

Quiz & Worksheet Goals

In this assessment, you will be presented scenarios and asked to determine answers on questions including:

  • Whether an intoxicated person can back out of a deal once sober
  • What legal rights the drunk person has in regards to a contract
  • When a contract may be voided
  • Whether a voided contract may be re-entered

Skills Practiced

This interactive quiz will test your capabilities in the following:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on contracts with intoxicated people
  • Critical thinking - apply relevant concepts to examine information about voidable contracts in a different light
  • Problem solving - use acquired knowledge to solve legal contract practice problems

Additional Learning

To better comprehend contracts involving intoxicated people, review this lesson, which will delve further into topics including:

  • Mental incapacity
  • When an intoxicated person makes a contract
  • Voidable and enforceable contracts
  • Lucy v. Zehmer (1954)