ContractsIntermediateArizona Exam

In Arizona, a buyer who enters into a purchase contract while legally intoxicated may later claim the contract is:

AVoid, because the buyer lacked legal capacity at the time
BVoidable at the buyer's election, because mental incapacity at signing can be grounds to rescindCorrect
CFully binding, because Arizona does not recognize intoxication as a defense
DVoidable only if the seller knew of the intoxication

Why Voidable at the buyer's election, because mental incapacity at signing can be grounds to rescind Is Correct

Answer B: Voidable at the buyer's election, because mental incapacity at signing can be grounds to rescind

Temporary incapacity, such as intoxication, typically makes a contract voidable (not void) at the incapacitated party's option. The contract is not automatically void — the buyer may ratify it upon becoming sober or elect to disaffirm it.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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