Question 1
Which one of the following categories of persons has their capacity to enter into contracts limited?
◦ refugees
◦ insane or intoxicated persons
◦ married women
◦ landed immigrants
◦ divorced women
Question 2
Joe was in a bar and saw his friend Sam. Sam had a considerable amount to drink and then offered to sell Joe his Porsche automobile for only $15 000. Joe made sure to have Sam sign a written agreement to that effect. The next day, Joe went to pick up the car, but Sam didn't remember anything about it. Even when Joe showed Sam the written agreement signed by him, Sam refused to deliver the car. Joe sued. Which of the following correctly states the legal position of the parties?
◦ As long as Joe can produce the agreement in writing, there is nothing Sam can do to get out of the deal. Once Sam has signed the document, he is responsible for its contents.
◦ Sam has to show he was legally intoxicated and he will not be bound.
◦ Sam will not have to go through with the deal because no money has yet changed hands.
◦ If Joe can show that there was no indication that Sam was drunk, even though Sam was completely incapacitated, Sam will be required to go through with the deal.
◦ Being drunk is no excuse; the contract is binding.
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