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Introductory Business Law/Contracts
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Contractual Capacity Under Intoxication

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While at a local pub, Millie purchased several alcoholic beverages for her friend Sandy. Shortly thereafter, the two decided to open a restaurant together, drafting a contract on a cocktail napkin and discussing their finances. The next morning, Sandy realized she could not proceed with the business venture. Millie subsequently filed a civil lawsuit against Sandy to enforce the agreement. Why will a court most likely rule in Sandy's favor?
A

Millie purchased the drinks, which absolved Sandy of any contractual liability.

B

Sandy's level of intoxication likely deprived her of the legal capacity to enter into a contract.

C

The contract was drafted prior to the planning of their finances.

D

The parties failed to discuss Sandy's financial capacity to uphold the contract.

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