A requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract. Which of the following is incorrect with respect to the law of incapacity?
A) If someone contracts with an insane person but there was no indication of mental illness, the contract can be binding.
B) A contract by an insane person for necessities, such as food, is binding.
C) The law governing contracts with persons intoxicated by alcohol or drugs is the same as the law governing contracts with the insane.
D) If a mentally impaired person cannot avoid a contract on the basis of insanity, the court could still set the contract aside for being an "unconscionable" transaction.
E) If you knew that you were negotiating a new lease, but that you weren't being as effective as you wanted to be because you had been drinking, you can have the resulting contract set aside.

Question

Quizplus · Accepted Answer

The incorrect statement is E because generally, merely being under the influence of alcohol or drugs during contract negotiations does not automatically give a party the right to have the contract set aside, especially if they were aware of their condition and proceeded with the negotiations. The ability to void the contract typically requires proving that the intoxication was to such a degree that understanding the nature and consequences of the agreement was impossible, and the other party took unfair advantage of this state.

A Requirement for the Existence of an Enforceable Contract Is