Intoxicated and not aware of the consequences, Grady agrees to a two-year phone service contract with Horizon, Inc., at more than the average market price. This contract is
A) enforceable.
B) not enforceable because contracting parties can change their minds.
C) not enforceable because the contract favors Horizon.
D) not enforceable if Grady was intoxicated enough to lack mental capacity.

Question

Intoxicated and not aware of the consequences, Grady agrees to a two-year phone service contract with Horizon, Inc., at more than the average market price. This contract is
A) ​enforceable.
B) ​not enforceable because contracting parties can change their minds.
C) ​not enforceable because the contract favors Horizon.
D) ​not enforceable if Grady was intoxicated enough to lack mental capacity.

Quizplus · Accepted Answer

If Grady was intoxicated enough to lack mental capacity, then the contract would not be enforceable. The law requires that both parties have the capacity to enter into a contract, which includes the ability to understand the consequences of their actions. If Grady was not able to comprehend the terms of the contract due to his intoxication, then he lacked the necessary mental capacity to enter into a binding agreement.

Intoxicated and Not Aware of the Consequences, Grady Agrees to a Two-Year