In Lucy v. Zehmer, the two parties were drinking in a bar when Lucy offers to buy Zehmer’s farm. After some negotiation a written contract was executed. Zehmer claimed that the whole episode was only a joke and he never intended to sell the farm. The court determined that
since the contract was written without lawyers present, it was likely not really serious so no contract was actually formed.
since Zehmer claimed to be “high as a Georgia pine” and it was only the liquor talking, there was no contract.
because negotiations and modifications to the written agreement lasted between 30-40 minutes, it appeared that both parties were serious so even if Zehmer had no objective intent to sell the farm he is still bound by his actions and the contract was enforceable.
because the terms were fair, the parties are bound by the contract regardless of their intent or capacity.
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