Question

Race entered into a written contract to sell a parcel of land to Lark for $150,000. At the time the agreement was executed, Race had consumed a large amount of alcoholic beverages that significantly impaired Race's ability to understand the nature and terms of the contract. Lark knew Race was very intoxicated and that the land has been appraised at $280,000. Race wishes to avoid the contract. The contract is

Answer 1

Voidable at Race's option.

Step-by-step explanation:

If the individual was so impaired at the time the contract was created that the individual was unable to comprehend what he or she was doing, a person could dis-affirm or revoke.

Because the ability of Race to understand the true nature or conditions of the contract has been substantially compromised, Race (Race will dis-affirm) has voidable the contract.