On December 20, 1952, Lucy and Zehmer met while having drinks in a restaurant. During the course of their conversation, Lucy apparently offered to buy Zehmer's 471.6-acre farm for $50,000 cash. Although Zehmer claims that he thought the offer was made in jest, he wrote the following on the back of a pad: "We hereby agree to sell to W. O. Lucy the Ferguson Farm complete for $50,000, title

Question

satisfactory to buyer.". Zehmer then signed the writing and induced his wife, Ida, to do the same. She claims, however, that she signed only after Zehmer assured her that it was only a joke. Finally, Zehmer claims that he was "high as Georgia Pine" at the time but admits that he was not too drunk to make a valid contract and understood the nature of the discussion. Which of the following statements is false?

a. There is no contract because lack of capacity is always a defense anytime someone has consumed alcohol.
b. There is no contract if Zehmer thought it was a joke; it doesn't matter how the reasonable person would have construed his words.
c. There is a contract because as long as there is a writing; whether or not there is mutual assent, consideration, or capacity is completely irrelevant.
d. There is a contract because intentions are judged objectively and Zehmer admits to having contractual capacity.

Answer 1

D