Under the Restatement (Second)of Contracts,intoxication will make a contract voidable if the other party has reason to know that the intoxicated person is so intoxicated that he/she cannot understand the transaction.

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The mere fact that a party to a contract had been drinking when the contract was formed would not normally affect his/her capacity to contract.Section 16 of the Restatement (Second)of Contracts provides that intoxication is a ground for lack of capacity only if the other party has reason to know that the affected person is so intoxicated that he/she cannot understand or act reasonably in relation to the transaction.

Under the Restatement (Second)of Contracts,intoxication Will Make a Contract Voidable