Asked by Maria Anjanette Sarmiento on Jul 22, 2024
Verified
Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,
A) Efron's intoxication was purely voluntary.
B) Gretel fraudulently induced Efron to become intoxicated.
C) Gretel was also intoxicated.
D) Efron understood the legal consequences.
Intoxicated
A state of being under the influence of drugs or alcohol to the extent that mental and physical capabilities are significantly impaired.
Legal Consequences
The results or penalties that arise from actions or decisions that have legal implications or breaches of law.
- Differentiate among void, voidable, and enforceable agreements considering the awareness and mental state of the involved parties.
Verified Answer
PB
Priyanka BassiJul 26, 2024
Final Answer :
D
Explanation :
Efron's understanding of the legal consequences of his actions at the time of entering the contract is crucial for the contract's enforceability, regardless of his intoxication. Contracts entered into by intoxicated individuals can still be valid if those individuals understood what they were doing and the legal implications of their actions.
Learning Objectives
- Differentiate among void, voidable, and enforceable agreements considering the awareness and mental state of the involved parties.