question archive In the Lucy v Zehmer case in the assigned reading
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In the Lucy v Zehmer case in the assigned reading. Lucy and Zehmer signed a contract in which Zehmer agreed to sell a farm to Lucy. When Zehmer signed the contract he whispered to his wife that he was joking and did not really intend to sell the farm. Why did the court enforce that contract.
A. the court enforced the contract because though Zehmer whispered to his wife that he did not intend to sell the farm. Lucy did not hear that comment and Zehmer outward manifestations indicated to Lucy an intent to sell
B. the court said that it did not matter what Zehmer intended he signed the contract and the contract was enforceable
C. the court and that written and signed contracts are always enforceable
D. the court said that the contract for the sale of land (the farm) is always enforceable
Answer:
Business Law
Step-by-step explanation
In the Lucy v Zehmer case in the assigned reading. Lucy and Zehmer signed a contract in which Zehmer agreed to sell a farm to Lucy. When Zehmer signed the contract he whispered to his wife that he was joking and did not really intend to sell the farm. Why did the court enforce that contract.
Option A. The court enforced the contract because though Zehmer whispered to his wife that he did not intend to sell the farm. Lucy did not hear that comment and Zehmer outward manifestations indicated to Lucy an intent to sell.Under the objective theory of contracts Lucy reasonably believed the sale contract of the farm was a serious business transaction.The court ordered for specific performance because Zehmer and wife true intent to sell the farm was not determinative as long as their actions justified a reasonable person's belief that a contract was intended.