Lawrence and Jane were hammering out a deal over cocktails.Jane thought that Lawrence was totally plastered and was hoping to take advantage of this in their negotiation of the terms.However,Lawrence knew exactly what he was doing and he knew exactly what Jane was trying to do.Although quite tipsy,he pretended to be staggering drunk.His plan was to make two deals: one deal that was good for him,the second deal a bad one for him.This way he could complete the deal that was to his advantage and,later,walk away from his obligations on the second deal.Which of the following is TRUE?
A) Both deals are enforceable since Lawrence was only pretending to be drunk.However,the court will interpret the contract between the parties to give effect to their objective intentions in all of the circumstances,notwithstanding that one agreement may contradict the other agreement.
B) Neither deal is enforceable since Jane believed Lawrence to be intoxicated when she entered into them.
C) Only the first deal is enforceable as the second contract must contradict the first contract.
D) Only the second contract is enforceable because it was the last contract between the parties.
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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