Lisa and Bob, potential business associates, met at a bar and grill regarding a new business venture they had been planning. Lisa brought a typed of copy of a contract, listing specific responsibilities and financial commitments that would be a part of the business venture. They both discussed the business venture under a nice meal. Since Lisa does not drink alcohol, she did not order any alcoholic beverages. Bob does and started off with a few drinks and throughout the night, increased them quite a bit to the point that he was so intoxicated he realized the smart thing to do was not do drive. He left his car at the restaurant and had Uber take him home. Bob also signed the contract that Lisa brought. Required:
a. Is this a valid contract that can be enforced why or why not?
b. How about if Bob signed the contract before his drinks arrived?
c. What about if Bob was a minor and sober and signed the contract? Is the contract valid?

Answer & Explanation:

a).  The contract between Lisa and Bob is valid and enforceable as a valid contract is an agreement between parties lacking no element. The contract was very detailed and well discussed regardless of Bob drinking it is still enforceable unless Bob can proof that the intoxication impaired his judgement and made him incompetent to sign the contract thereby making it void.

b).  The contract will be valid if Bob signed it before the drinks arrived as the document was complete and his signature show acceptance of the terms of the contract.

c). A minor can not enter into a contract as they may lack the capacity to enter into a valid contract. As such, if Bob was a minor regardless of him being sober any contract signed by him can be completely voidable.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.