Question

If a person was sufficiently intoxicated to lack the mental capacity to comprehend the legal consequences of entering into the contract, the contract may be voidable at the option of the intoxicated person. If, despite intoxication, the person understood these legal consequences, the contract will be enforceable.1. True2. False

Answer 1

Answer:

The correct answer is True.

Explanation:

When an intoxicated person enters into a contract, the contract can either be enforceable, meaning held to the fullest extent of the law, or voidable by the intoxicated person. The court will look at two criteria that need to be present in order to make the contract voidable:

• The intoxication was severe enough that the person entering into the contract was incapacitated.

• The other party was aware of the intoxication at the time.

A voidable contract, in this instance, is one in which the intoxicated party can end the agreement under certain terms. To expand on the criteria above, in order for the intoxicated person to void the contract, there needs to be adequate proof that one of the following occurred:

• The intoxicated person consumed enough alcohol or drugs to cause impairment in thinking sufficient enough that he could not understand the legal ramifications of entering into the contract.

• The other party to the contract knew of the intoxication.

Answer 2

Answer:

1) True

Explanation:

An intoxicated person can either:

1. disaffirm the contract: an intoxicated person can void a contract while still being intoxicated or short after becoming sober. If the contract involves basic necessities, it can still be voided but the intoxicated person is still liable for the goods or services consumed.
2. ratify the contract: once sober the person can ratify the contract and it becomes enforceable by all the parties.