April 07, 2021

        The element of a contract Zehmer contended was missing is contractual capacity. This element is described as “the legal ability to enter into a binding agreement…[and] intoxicated persons do not [have such ability]” (Kubasek et al., 2020). Both Lucy and Zehmer were drunk and joking about selling the farm.

         “The trial court found for the defendants and the plaintiffs appealed” (Kubasek et al., 2020), most likely because the trial court saw that offeree and offeror were both drunk at the time, then the contract is not valid.

        However, in Virginia Supreme Court, the court reversed in favor of the plaintiff. The reason for this ruling is that despite being intoxicated, both parties’ words and actions were reasonable and that Zehmer’s “undisclosed intention is immaterial” (Kubasek et al., 2020). In other words, “an agreement in secret jest is binding” (YaleCourses, 2017) because the court does not consider hidden intents.

        I agree with the ruling. If courts and parties in contracts considered hidden intents, it would be difficult to enforce contracts because one can never pinpoint the other party’s exact intentions. Imagine entering a contract, believing it is true, only to be told that it was only a joke. To add, the courts must be objective rather than subjective, so the courts must rely on “the outward expression of a person as manifesting his intention rather than to his secret and unexpressed intention” (Kubasek et al., 2020).

        A personal experience where I entered a contract that I did not think of as binding would be signing a contract with a mobile service company. All mobile service company always advertise their service as “no contract,” but this does not apply to all their offerings. That is something that they do not clarify in their advertisements. All elements of the contract: agreement, acceptance, consideration, and contractual capacity were in place. At that time, I was naïve, so I did not think of these as contractual elements. As a result of my naivety, I am still paying the mobile service company.

References

Kubasek, N. K., M Neil Browne, Dhooge, L. J., Herron, D. J., & Barkacs, L. L. (2020). Dynamic business law. Mcgraw-Hill Education. https://newconnect.mheducation.com/

YaleCourses. (2017, July). Contract Law 22 II Lucy v Zehmer (joking offer). Www.youtube.com. https://www.youtube.com/watch?v=pa6vEi3JgyY