Joe Was in a Bar and Saw His Friend Sam

question 35

Multiple Choice

Joe was in a bar and saw his friend Sam. Sam had a considerable amount to drink. Sam 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 him 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?

• A) Sam just has to show he was legally intoxicated, and he will not be bound.
• B) If Joe can show that there was no indication that Sam was drunk, even though Sam was completely incapacitated, he will be required to go through with the deal.
• C) Sam will not have to go through with the deal because no money has yet changed hands.
• D) 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.
• E) Being drunk is no excuse; the contract is binding.

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Definitions:

Optimal Quantity

The most efficient, cost-effective, or profitable level of production or inventory a business can achieve under given conditions.

Understock Quantity

The situation or amount by which inventory levels fall short of the required stock to meet demand, potentially leading to missed sales or production delays.

Optimal Quantity

The most efficient level of production or inventory a company can achieve while minimizing costs and maximizing profits.

Threshold Contract

A type of agreement specifying minimum performance criteria that must be met for certain conditions or compensations to apply.