Contract Modification -- The situation involves a buyer, Tabor, and a seller, Martin. The two enter into a contract to deliver 50 file cabinets at $40/cabinet in five equal installments, or 10 cabinets per delivery for $400. After two deliveries, Martin tells Tabor that inflation has caused costs to increase and he can only deliver the remaining 30 cabinets if Tabor pays $50. Tabor agrees in writing. Can Martin legally collect the additional fees? The answer is dependent upon the wording of the initial contract and whether Tabor's agreement in writing makes the agreement part of the contract or if Martin is in breach of the original contract and Tabor only agreed to the new price to ensure delivery of his needed items. If there are no price adjustments in the original contract, then Martin cannot legally force Tabor to pay anything more than the agreed upon price. If he does not, Tabor can sue Martin for breach of contract (Contract Obligations, 2010).
Part 2 -- Intoxication- Kira had several drinks one night and sold Charlotte a diamond necklace considerably under value. The next day, Kira offered the $100 she received back to Charlotte and asked for a return of the necklace. Charlotte refused. Kira made the argument that she was intoxicated at the time and the contract was invalid. Contracts are valid unless the intoxicated party can prove that they were so drunk that they were unaware of the legal consequences of entering into any contract. We do not know if Kira was able to drive home, how drunk she may have been, or various other circumstances surrounding the transaction. The issue boils down to the capacity to understand a contract. Most legal scholars believe that the Courts typically rule that the intoxicated person should need to take responsibility for their actions. However, the Court could also rule that Charlotte took advantage of Kira because of the nature of the price on the necklace -- thousands of dollars, which a reasonable person would not likely enter into (Read This, 2012; Who Lacks, 2011).
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