Module 03 Written Assignment – Drinking and Contract Formation Do Not Mix!

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Read the following case studies and answer the questions. Be sure to
use the appropriate legal terminology that you learned this week.

Case Study 1

Steve and Bill go out drinking. After Steve has had so many drinks
that Bill knows (or should know) that Steve is very intoxicated, Steve
says to Bill, “I’ll sell you my house for $100,000.” Bill accepts. The
fair market value of Steve’s house is $100,000. Will Steve be able to
avoid this transaction? Why or why not?

Case Study 2

Steve writes a letter to Bill one day saying, “I will sell you my
house for $100,000.” Completely unbeknownst to Bill, at the time Steve
wrote the letter he was utterly intoxicated. The fair market value for
the house is $100,000. Will Steve have to sell his house to Bill? Why or
why not?

Case Study 3

Mary, a longtime law professor, has been entering into quite a few
contracts in recent months. One of those contracts was for the purchase
of a riding lawn mower. Unbeknownst to the sales clerk who entered Mary
into the contract, Mary is suffering from Alzheimer’s, but has not been
deemed incompetent by the state. On the day of delivery, the sales clerk
delivers the lawn mower to Mary’s apartment. Mary is surprised by the
delivery of the mower and has no recollection of ordering it. The clerk
shows her the contract. Is this contract voidable and why?

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