Lucy v Zehmer

 

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Lucy v Zehmer

Question 1

The plaintiffs had wanted to buy land from the defendant. Lucy visited the Zehmers and told Zehmer that he would not accept $50,000 for the land. Zehmer said to her that he would accept, but Lucy wouldn’t afford $50,000. They drank some alcohol and talked about the sale of the land. Lucy convinced Zehmer to draw a contract that stipulated the land’s sale for a consideration of $50,000. Later on, Zehmer refused to uphold the land sale and said he was intoxicated at the time of drawing and signing the contract. Lucy sued. 

The issue, in this case, is whether the contract is legally binding on Zehmer (W.O. Lucy & J.C. Lucy v A.H. Zehmer & Ida S. Zehmer, 1954).

 

Question 2

The contract was legally binding upon Lucy and Zehmer. When Lucy visited Zehmer, they talked about the sale of the land. Zehmer drew the contract and asked his wife to sign it (W.O. Lucy & J.C. Lucy v A.H. Zehmer & Ida S. Zehmer, 1954).

 

Question 3

It will help a party avoid liability. It must be clear to both parties that it’s a joke. In Zehmer’s case, he couldn’t prove it was a joke because Lucy came to see him because of land sale and nothing else. They even talked about it for a long time before Zehmer eventually drew the contract and asked his wife to sign it (W.O. Lucy & J.C. Lucy v A.H. Zehmer & Ida S. Zehmer, 1954).

 

Question 4

Communication: The offeror must clearly communicate the offer to the offeree. Communication can either be done orally or in writing. In this case, Lucy (the offeror) communicated the offer to Zehmer (the offeree) orally.

Commitment: The offeror must be committed while offering the contract. This means that the offeror must be ready to be legally bound by the contract. Lucy visited Zehmer with the sole intention of making an offer to him for the sale of his land. It was all they talked about during her visit.

Definite terms: The offeror must be clear about the terms of the contract. Lucy told Zehmer that she wanted to buy Zehmer’s land at a consideration of $50,000. She was as straightforward as possible (Lawrence, 2019).

 

Question 5

  1. Acceptance of an offer can only be granted to the offeror. A third party without the knowledge of the offer cannot be given acceptance. Lucy made the offer. Zehmer could grant only Lucy acceptance.
  2. Acceptance of an offer has to be absolute. It must be acceptance of the terms stated by the offeror. Zehmer told Lucy that he would accept $50,000 as consideration for the sale of his land.
  3. Acceptance of an offer has to be communicated by the offeree to the offeror. Zehmer told Lucy that he would accept her offer.
  4. Acceptance of an offer has to be in the prescribed mode or an accepted mode in the course of business. Zehmer drew a contract accepting Lucy’s offer.
  5. Acceptance of an offer has to be implied by the offeree. Zehmer told Lucy that he would accept her offer. He went on to draw a contract and asked his wife to sign it (W.O. Lucy & J.C. Lucy v A.H. Zehmer & Ida S. Zehmer, 1954).

 

Question 6

A bilateral contract is a contract in which all parties make promises, while a unilateral contract is a contract in which promises are made by only one party in the contract (W.O. Lucy & J.C. Lucy v A.H. Zehmer & Ida S. Zehmer, 1954).

 

Question 7

  1. Expiry of the contract. Some contracts are legally binding up to a particular time stipulated in the contract. Once this time lapses, the contract is terminated.
  2. Death of a party. If one party to a contract dies, the contract is terminated.
  3. Completion. If each party to a contract fulfills their obligation to the end, the contract can be terminated.
  4. Mutual agreement. Parties to a contract can agree to terminate a contract.
  5. The impracticability of performance. For some reason, natural or artificial, a party may find it impossible to perform its obligation. The contract can be terminated (Johnson, 2019).

References

Johnson, R. (2019, January 25). 5 Ways to Terminate a Contract. Retrieved from Chron: smallbusiness.chron.com/5-ways-terminate-contract-16020.thml

Lawrence, G. (2019). What Are the 3 Elements of a Valid Offer. Retrieved from azcentral: yourbusiness.azcentral.com/3-elements-valid-offer-7194.html

W.O. Lucy & J.C. Lucy v A.H. Zehmer & Ida S. Zehmer, 196 Va. 493, 84 S.E.2d 516 (Supreme Court of Virginia November 22, 1954).

 

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