Intoxication and Metal Incapacity

Question 1

INTOXICATION (Defense to a validly formed contract)

Answer 1

Contract is Voidable by INTOXICATED PARTY if:

• Other party has reason to know that by REASON OF INTOXICATION:
  1) Unable to understand in a reasonable manner nature and consequences of the transaction (Cognitive / Mental ability: Intent is required), or
  2) Unable to act in a reasonable manner in relation to the transaction (Drug made me inpulsive, I couldnt stop myself).

Question 2

MENTAL INCAPACITY (VOIDABLE IF)

Answer 2

1) Person unable to UNDERSTAND in a
REASONABLE manner the NATURE AND CONSEQUENCES of transaction, or
2) UNABLE TO ACT in a REASONABLE MANNER in relation to the transaction, and other party has reason to know of the condition.