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(Business Law) How do you think a court may determine if someone was intoxicated when they...

(Business Law)

How do you think a court may determine if someone was intoxicated when they entered in a contract so they can raise the mental incapacity as a defense?

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Answer #1

Incapacity in contract law generally means a person who is not mentally sound, which can include being intoxicated. But, a person cannot just make a claim of mental incapacity. There are two tests used to help to determine whether a party to a contract is incapable of fulfilling its promises: a cognitive test, or a motivational test. The court will administer a cognitive test to determine whether the person understands the contract language and consequences of entering into the contract. Sometimes, the person understands the language and the consequences, so the court will test motivational reasons for entering into the contract. The test may indicate a condition like mania or delusional thinking as a motivator.

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