Question 34

This contract is voidable.

An intoxicated buyer's offer on a house, which was accepted by the owners, results in a contract that is voidable. This means that the intoxicated buyer has the right to affirm or reject the contract upon regaining sobriety.

A) illegal

This option is incorrect because the contract itself is not illegal; it involves a legal transaction regarding property. The intoxication of the buyer does not render the contract illegal, but it does affect the buyer's capacity to enter into a binding agreement.

B) void

This option is incorrect as a void contract is one that is invalid from the beginning and cannot be enforced by either party. In this scenario, the contract is not void; rather, it is voidable at the discretion of the intoxicated buyer.

C) unilateral

This option is also incorrect. A unilateral contract involves one party making a promise in exchange for an act by another party. In this case, the contract formed is bilateral, as both the buyer and sellers have mutual obligations.

D) voidable

This option is correct because the intoxicated buyer has the legal right to void the contract due to their impaired capacity at the time of the agreement. The contract remains valid unless the buyer chooses to exercise their right to void it.

Conclusion

The contract is voidable because it was entered into by a buyer who was intoxicated, affecting their capacity to consent. Unlike other options, voidability allows the buyer to affirm or reject the contract once sober. All other options fail to accurately describe the nature of the contract given the circumstances.