Asked by Alexis Klein on Jun 24, 2024
Verified
Describe the test most states follow regarding the capacity of intoxicated persons to enter into contracts.
Intoxicated Persons
Individuals whose cognitive and physical abilities are significantly impaired due to the consumption of alcohol or drugs.
Capacity
The legal ability and authority to enter into binding contracts and obligations.
- Understand the legal doctrines related to the ability to enter into contracts, particularly in relation to minors and persons under the influence of substances.
Verified Answer
MS
Michael SchneiderJun 28, 2024
Final Answer :
Most states follow the Restatement of Contracts,Section 16,which provides that contracts of an intoxicated person are voidable if the other party had reason to know that because of the intoxicated person's condition,that person was unable to understand the nature and consequences of the transaction or was unable to act in a reasonable manner in relation to the transaction.If the intoxication merely causes someone to exercise poor judgment,the person's capacity to enter into a legally binding contract is not affected.
Learning Objectives
- Understand the legal doctrines related to the ability to enter into contracts, particularly in relation to minors and persons under the influence of substances.