Intoxication

In one sentence

Being under the influence of alcohol or drugs in a way that impairs judgment and contract capacity.

Plain English

If someone is so intoxicated when signing a contract that they can't understand what they're agreeing to, the contract may be voidable. The law recognizes that extreme intoxication can prevent a person from having the mental capacity to make a binding deal. However, simply having had a few drinks doesn't automatically cancel a contract; the intoxication must be severe enough that the person couldn't grasp the nature and consequences of the agreement. The other party's knowledge of the intoxication matters too—if they knew the person was heavily intoxicated, a court is more likely to void the deal.

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Example

After several shots at a bar, Tom signs a contract to sell his motorcycle for $500. The next morning, he sobers up and realizes he made a terrible deal. He might be able to cancel the contract if he can show he was so drunk he didn't understand what he was signing.

Used in a sentence

“The defendant's intoxication at the time of signing made the contract voidable.”

Related terms

Mental Incapacity

Lacking the mental ability to understand a contract's nature, terms, or consequences.

Minors

People under the legal age of adulthood who generally cannot be bound by contracts.

Unenforceable

A contract or clause that a court will not force either party to follow, even though it appears valid.

Mutual Consent

Both parties freely agree to the same terms of a contract without pressure or misunderstanding.

Implied Contract

A contract where the parties' intent to be bound is shown by conduct rather than explicit words.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.