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Introductory Business Law/Contracts
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Intoxication And Contractual Capacity

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Ralph, a real estate agent, met Mary, a prospective home buyer, at a local saloon to discuss an offer on a condominium. When Ralph arrived, Mary was drinking a glass of wine. During the ensuing negotiations, Mary offered $50,000 above market value for the property. Ralph promptly presented the offer, and it was accepted by the seller. Several days later, Mary attempted to void the contract, claiming she was intoxicated at the time of the agreement and that Ralph should have been aware of her condition. What is the most likely legal outcome?
A

The court will rule that the contract may not be voided under any circumstances.

B

The court will rule that Mary can only request a mutual rescission, leaving the decision entirely to the other party.

C

The court will determine whether Mary was intoxicated to the point of lacking capacity; if she was, the contract may be voidable.

D

The court will conclude that there is no objective way to determine Mary's level of intoxication, making her claim too difficult to prove.

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