Contract can be avoided because?
Question by Passion99: Contract can be avoided because?
Ty and Cher went out for dinner to discuss a business venture. Cher had several glasses of wine and became visibly intoxicated. Ty and Cher continued to discuss the venture, and formed a contract in which Ty received 80% of the profits resulting from the venture, and Cher received 20%, even though Cher agreed to invest the majority of the money. Ty agreed to contribute her expertise and services to the venture. The next morning, Cher realizes her terrible mistake. Cher’s best chance to avoid the contract with Ty is to say that
ANSWER CHOICES:
A. she didn’t know what she was doing at the time the contract was formed.
B. she was drunk at the time the contract was formed.
C. the contract is unconscionable.
D. the contract is illegal.
I have a confusion between B and C. B yes she was surely drunk at that time but she knew that they are gathered to sign contract (objective theory). C as one gets 80 percent and other only 20 percent but here also contract wont void as one is offering his\her services. So both are confusing me. Can any one help me?
thanks!
Best answer:
Answer by OldJimmy
C is not the case, because there are cases every day where venture capitalists invest large sums of money in a company for just a small share of the ownership. Especially where Ty has the expertise and Cher just has the deep pockets.
B is the correct answer. Diminished capacity is a valid argument in this case.
What do you think? Answer below!