A Contract Entered Into By An Intoxicated Person Is Never Valid.

A contract entered into by an intoxicated person is never valid.

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A contract entered into by an intoxicated person is never valid.

Question:

Is it true that a contract will not be valid if one of the contracting parties was intoxicated?

Answer:

False

A contract entered into by an intoxicated person is a valid contract.

Even though a person was under the effect of alcohol or drugs (intoxicated) when entering into a contract, the law recognizes that the contract can still be valid.

A person cannot invoke his or her own “negligence” or “recklessness” to negate their legal obligation under a contract.

Elements of a Contract

There are five elements required for a contract to be valid and legally binding:

  • Offer
  • Acceptance
  • Consideration
  • Legal capacity
  • Legality 

In this context, a contract can be formed either expressly through the written or oral expression of the parties or even implicitly through their actions.

As a result, an intoxicated person may legally enter into a valid and legally binding contract even though the person was not in a perfect position to assess the risks or benefits of the contract.

As a result, the “actual intention” of the contracting party is not relevant from a legal perspective to establish whether a contract has been legally formed or not.

Unlike a “minor” who does not have the legal capacity to enter into a contract, the intoxication of a person does not affect their legal capacity to enter into a contract (unless the person was intoxicated against their will or there were acts of fraud.

Takeaways 

Let’s look at a summary of our findings.

A contract entered into by an intoxicated person is never valid:

  • Question: A contract entered into by an intoxicated person is invalid?
  • Answer: False, a contract entered into by an intoxicated person a valid contract.
Business law 
Contract enforcement 
Contract with minors 
Disaffirm
Exculpatory clause 
Good moral character 
Legal capacity 
Lucy vs Zehmer
Offer and acceptance 
Ratification definition
Voidable contract
Author
What does ratified mean?
What is a voidable contract?
What is a void contract?
Author

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