MGT 206 Georgia Military College Week 5 Business Law Discussion

One element of a contract is contractual capacity, or legal ability, to create a contract. Capacity refers to a party’s ability to perform legally valid acts, acquire legal rights, and incur legal liabilities.  Review the following case,

Lucy v. Zehmer

, 196 Va. 493, 84 S.E.2d 516 (1954). Use this link to access the article: Lucy v. Zehmer.

What effect does intoxication have on persons’ contractual capacity?  How does intoxication apply to this case?  Does the court look at objective indications of intoxication?  Explain.  Do Lucy and Zehmer have an enforceable contract?  Why or why not?  Is there sometimes a different emphasis in the cases that concern lack of capacity on the ground of intoxication than in the cases that concern lack of capacity on other grounds?  If a person is intoxicated enough to lack mental capacity, can a contract entered into at the time be voidable at his or her option?  Do you agree or disagree with the outcome of this case?  Why?