Peter agrees a sale for his car with Alex for the sum of R1000 (even though the car is only worth approximatelyR500). However, when the contract was formed Alex was clearly under the influence of alcohol and he had trouble standing and forming a coherent sentence. When Peter attempts to enforce the contract Alex wishes to avoid it. What is the effect of this situation?
Peter agrees a sale for his car with Alex for the sum of R1000 (even though the car is only worth approximatelyR500). However, when the contract was formed Alex was clearly under the influence of alcohol and he had trouble standing and forming a coherent sentence. When Peter attempts to enforce the contract Alex wishes to avoid it. What is the effect of this situation?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Peter agrees a sale for his car with Alex for the sum of R1000 (even though the car is only worth approximatelyR500). However, when the contract was formed Alex was clearly under the influence of alcohol and he had trouble standing and forming a coherent sentence. When Peter attempts to enforce the contract Alex wishes to avoid it. What is the effect of this situation?
Select one:
a. Such a contract is void and hence cannot be enforced.
b. The contract is voidable as Alex was so intoxicated that he did not realise to what he was agreeing and Peter was aware of this.
c. There is no contract as a person who has been drinking alcohol cannot establish a valid contract.
d. The contract is enforceable against Alex as a person's state of intoxication will not affect a contract being formed.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON