1. What factors does the court focus on when deciding whether Lucy’s understanding of the contract formation was reasonable?
2. What facts could you change in this case that would result in the court determining that no contract existed?

Lucy was a farmer who knew Zehmer for a period of 15-20 years and, during a meeting at a restaurant over drinks, offered to buy Zehmer’s farm. Lucy’s previous offers to buy Zehmer’s farm had been rejected, but during this meeting Lucy persuaded Zehmer to put it writing that he would sell Lucy the farm for $50,000. The parties modified the writing several times and discussed the terms over a period of 30-40 minutes before signing the contract. The next day, Zehmer failed to acknowledge the contract, and claimed that had understood the whole transaction as a joke and that he was as “high as a Georgia Pine” while modifying the contract. Thus Zehmer argued that the contract void because it lacked objective intent to contract.

  • CreatedNovember 06, 2014
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