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Based on the aforementioned facts of this case Sam did not lack the capacity to enter contract but Sam very possibly could have been under duress giving him the possibility to void the contract the sale of his motorcycle According to Attorney Richard Stim capacity refers to the minimum mental capacity required to enter into an agreement In other words individuals who lack the capacity to contract are presumed to not know what they re doing and they can therefore void the contract Though for people who lack capacity due to voluntary intoxication courts generally do not allow them to avoid their contractual obligation and they have to take responsibility for their self induced altered state of mind According to Attorney Stim for someone to void a contract they must be extremely intoxicated to the point where they do not have an idea of what they are doing they must be so far gone as to even understand the terms and consequences of an agreement This is not the case with Sam he had 2 cups of wine the same amount as Chris and not a big amount of alcohol and although Sam was intoxicated he was able to explain most of the details of what happened to his lawyer the following day Sam told his lawyer he was pressured by Chris to sell his motorcycle meaning that Sam was aware of the situation and was not intoxicated to the point where he did not know what was happening therefore showing that Sam did not lack the capacity to enter contract Sam very possibly could have been under duress though giving him the possibility to void the contract According to the Corporate Finance Institute Duress in business law refers to the act of using threats or psychological pressure to force someone to behave in a way that is contrary to their wishes Someone who is forced into an act or contract under duress can void the contract Duress can be psychological or physical in the case of Sam it was psychological duress that led him to entering the contract Chris has a concealed weapon on him that he made very obvious to Sam basically threatening him silently into selling his motorcycle Sam has always said to Chris that the motorcycle was not for sale and Chris being bigger than Sam only increased the intimidation Chris threatened Sam into selling him the motorcycle for 3000 Sam acted under duress he felt threatened and in danger and was also intoxicated The sale of the motorcycle was not valid Reference List Corporate Finance Institute 2022 October 13 Retrieved November 19 Duress 2022 from https corporatefinanceinstitute com resources management duress Who lacks the capacity to contract Richard Stim A 2011 October 10 www nolo com Retrieved November 19 2022 from https www nolo com legal encyclopedia lack capacity to contract 32647 html


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FAU BUL 4421 - Capacity or Duress

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