________ is a ground for lack of capacity only when it is so extreme that the person is unable to understand the nature of the business at hand.

A) Infancy
B) Intoxication
C) Misrepresentation
D) Duress

The mere fact that a party to a contract had been drinking when the contract was formed does not normally affect his/her capacity to contract.Intoxication is a ground for lack of capacity only when it is so extreme that the person is unable to understand the nature of the business at hand.