Asked by Emily Apodaca on May 08, 2024

verifed

Verified

In the First State Bank of Sinai v. Hyland case, the Supreme Court of South Dakota held:

A) Mervin's obligation on a promissory note was void due to his alcohol-related incapacity.
B) Mervin ratified his voidable contract by conduct, making it a fully valid legal obligation.
C) the alcohol intoxication of a party to a contract does not affect the contract's enforceability.
D) Mervin could only use express language to ratify a contract formed while he was incapacitated by alcohol use.

Ratified

Formally approved or confirmed, often in the context of treaties, contracts, or legislative acts.

Promissory Note

A written, legally binding document in which one party promises to pay another a definite sum of money either on demand or at a fixed future date.

Alcohol-Related Incapacity

A state of being unable to function or make decisions due to excessive consumption of alcohol.

  • Recognize the legal consequences of intoxication on contractual capacity and the voidability of contracts.
verifed

Verified Answer

CP
Connie PinedaMay 11, 2024
Final Answer :
B
Explanation :
The Supreme Court of South Dakota held that Mervin ratified his voidable contract by conduct, making it a fully valid legal obligation. This means that despite any initial incapacity due to alcohol, his subsequent actions affirmed the contract, making it enforceable.