Lawrence and Jane were negotiating a contract, for the purchase and sale of widgets, over cocktails.Jane believed that Lawrence was completely intoxicated and she was hoping to take advantage of his condition to get the best possible deal for herself.Lawrence, however, knew what Jane was trying to do because he was really only slightly impaired.He therefore manipulated the situation to sign two contracts.The first was to his advantage and the second benefitted Jane.Lawrence believed that he would be entitled to enforce the first, but walk away from the second.Which of the following is most likely to be TRUE?
A) Both deals are enforceable because Lawrence was not truly incapacitated.
B) Neither deal is enforceable because Jane believed Lawrence to be intoxicated and therefore could not have reasonably expected to enforce either transaction.
C) A court will enforce the first contract, but not the second, because Jane tried to take advantage of Lawrence before he tried to take advantage of her.
D) A court will enforce the second contract, but not the first, because Lawrence knew the true facts, but Jane did not.
E) Neither contract is enforceable because even a person who pretends to be intoxicated does not have contractual capacity.
Correct Answer:
Verified
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