Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 17

Zehmer and his wife owned a 471-acre farm. In a restaurant one night, Lucy said to Zehmer that he bet Zehmer wouldn't take $50,000 cash for the farm. When Zehmer replied he didn't think Lucy had the cash, Lucy said he would get it if Zehmer would put it in writing that he would sell him the farm. Zehmer then wrote on a piece of paper, "I agree to sell the... farm to W.O. Lucy for $50,000 cash." Zehmer said in an undertone at the time that he thought it was a joke. When Zehmer later refused to sell the farm to Lucy, Lucy brought an action to enforce the contract. Is Lucy entitled to purchase the farm? (Lucy v. Zehmer, 196 Va. 493, 84 S.E.2d 516)