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module 03 written assignment – drinking and contract formation do


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  void 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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