LAW/531
October 26, 2011
Facts
In the case Zehmer v. Lucy, Zehmer created an agreement that Lucy would sell his farm for 50,000 dollars. While at the bar drinking Zehmer had his wife sign the contract. Lucy tried to close the deal with a five dollar deposit and Zehmer refused it stating the contract was a joke. Lucy is suing Zehmer for breach of contract.
Issues
Is the contract between Zehmer and Lucy valid if one of the parties never intended to follow through with the contract?
Rule
The mental states of the parties are not a requisite to form a contract. If the words or act of one of the parties have reasonable meaning that parties undisclosed objective is irrelevant.
Analysis
At any time during the contract agreement did Zehmer indicated to Lucy by word or actions that he did not intend to sell the farm. Both parties had argued and discussed the term to the agreement for a while as stated by Zehmer. Both Zehmer’s stated that when Zehmer went to his wife to sign the contract he whispered to her it was a joke, which was Lucy, would not hear him as Zehmer did not want Lucy to know what his intentions where.
Conclusion
At first the verdict was in favor of Zehmer; however during appeal the court turned the case over to Lucy. Zehmer believed he was not entering a contract with Lucy; nevertheless Zehmer had his wife sign the contract knowing that the farm would not be signed. With this fact Lucy had a binding contract signed by both Zehmer’s and agreed to the termed agreed upon.
Reference
Lucy v. Zehmer, 196 Va. 493 - Va: Supreme Court