Question

Business law: Robert Thomas entered into an agreement with License Realty Corp. to lease a building for 20 years. The lease also included an option to purchase the property. Richard DeSouza, an alcoholic undergoing treatment, singed the lease on behalf of License Realty. Eleven years later, Thomas exercised his option to purchase the property. The owner refused to sell and stated that DeSouza lacked the capacity to sign the contract for License Realty, due to his alcoholism. Was the contract voidable? why

Answer 1

Please leave a like if you find this answer helpful, it really helps me a lot and motivates me in providing better answers in future. If you have any doubts, please let me know before leaving a dislike I would surely assist you. Thanks in advance for liking this answer.

The issue at hand is whether DeSouza was at capacity to sign the contract because of his alcoholism, and whether or no the contract is voidable. The law regarding intoxicated people states, "A person who has been legally declared to be a habitual drunkard cannot make a valid contract." Although he may not have been drunk while signing the contract, he was still a habitual drunkard at the time the contract was made, so the contract is voidable.