Written Assignment – Drinking and Contract Formation Do Not Mix!

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Read the following case studies and answer the questions. Be sure to use the appropriate legal terminology that you learned this week.

Case Study 1

Steve and Bill go out drinking. After Steve has had so many drinks that Bill knows (or should know) that Steve is very intoxicated, Steve says to Bill, “I’ll sell you my house for $100,000.” Bill accepts. The fair market value of Steve’s house is $100,000. Will Steve be able to avoid this transaction? Why or why not?

Case Study 2

Steve writes a letter to Bill one day saying, “I will sell you my house for $100,000.” Completely unbeknownst to Bill, at the time Steve wrote the letter he was utterly intoxicated. The fair market value for the house is $100,000. Will Steve have to sell his house to Bill? Why or why not?

Case Study 3

Mary, a longtime law professor, has been entering into quite a few contracts in recent months. One of those contracts was for the purchase of a riding lawn mower. Unbeknownst to the sales clerk who entered Mary into the contract, Mary is suffering from Alzheimer’s, but has not been deemed incompetent by the state. On the day of delivery, the sales clerk delivers the lawn mower to Mary’s apartment. Mary is surprised by the

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