Question

Race entered into a written contract to sell a parcel of land to Lark for $150,000. At the time the agreement was executed, Race had consumed a large amount of alcoholic beverages that significantly impaired Race's ability to understand the nature and terms of the contract. Lark knew Race was very intoxicated and that the land had been appraised at $280,000. Race wishes to avoid the contract. The contract is:

Answer 1

Answer:

The contract is voidable at Race's discretion.

Explanation:

The law will recognise the contract as being valid. However, the inebriated state in which Race was in when he signed the contract is of concern here. Since his ability to fully understand and comprehend the terms and nature of the contract was compromised, he has the option to disaffirm or reaffirm the contract in question.