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Summary BUS 206 6 1 Case Analysis.docx BUS 206 BUS 206 Module 6 Case Analysis New Hampshire University Lucy v. Zehmer is a U.S. case regarding contract formation and enforceability of a contract in the common law. On December 20, 1952, Lucy and Zehmer we$7.49
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Summary BUS 206 6 1 Case Analysis.docx BUS 206 BUS 206 Module 6 Case Analysis New Hampshire University Lucy v. Zehmer is a U.S. case regarding contract formation and enforceability of a contract in the common law. On December 20, 1952, Lucy and Zehmer we
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BUS 206 6 1 Case A BUS 206 BUS 206 Module 6 Case Analysis New Hampshire University Lucy v. Zehmer is a U.S. case regarding contract formation and enforceability of a contract in the common law. On December 20, 1952, Lucy and Zehmer went to a restaurant owned by Zehmer and had quite a bit t...
bus 206 6 1 case analysisdocx bus 206 bus 206 module 6 case analysis new hampshire university lucy v zehmer is a us case regarding contract formation and enforceability of a contract in th
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BUS 206
BUS 206 Module 6
Case Analysis
New Hampshire University
Lucy v. Zehmer is a U.S. case regarding contract
formation and enforceability of a contract in the common law. On December 20,
1952, Lucy and Zehmer went to a restaurant owned by Zehmer and had quite a bit to drink while
discussing the possibility of selling Zehmer’s farm. That evening, Zehmer writes on the back of the
restaurant’s receipt: “We hereby agree to sell to W. O. Lucy the Ferguson Farm complete for $50,000.00,
title satisfactory to buyer“. Here is the image of this famous contract:
(Source: Cooley Law School, Western Michigan University)
This note was signed by Zehmer and his wife. Shortly thereafter, Lucy hires an attorney to
validate the title of the farm and conclude the transaction. Lucy’s attorney writes to Zehmer asking for
when he had the intention to close the deal. However, Zehmer responds stating that he never had the
intention to sell his farm. He stated further that the note on the receipt was written in jest and did not
represent a binding commitment on his part as they were in a jovial atmosphere and he was the influence
of alcohol. The case ultimately goes to court.
Court’s decision in the case
, Archibald C. Buchanan of the Supreme Court of Virginia rendered the court’s judgment in this
case. The court’s decision was unanimous to the effect that Zehmer was not intoxicated to a point
where he was unable to understand what he was doing. Zehmer was able to comprehend the
consequences of his actions when he wrote and signed the note on the back of the restaurant receipt.
Furthermore, Lucy had an objective and justifiable belief that Zehmer was serious about the sale of his
farm and did not consider that the note and the signature was just a jest.
The court concluded that a person’s mental assent was not a requisite for the formation of a
contract. A person’s actions and words convey are clear, a person’s intention is not relevant. Ultimately,
the court concluded that in this case, specific performance was the proper remedy to compensate Lucy for
her damages.
Extracts of the case
Here is an extract from Lexis Nexis of the Lucy v Zehmer case depicting the circumstances on
how Zehmer and his wife signed a contract for the sale of their farm:
“On the night of December 20, 1952, around eight o’clock, he took an employee to McKenney, where
Zehmer lived and operated a restaurant, filling station and motor court. While there he decided to see
Zehmer and again try to buy the
Ferguson farm. He entered the restaurant and talked to Mrs. Zehmer until Zehmer came in. He asked
Zehmer if he had sold the Ferguson farm. Zehmer replied that he had not. Lucy said, “I bet you wouldn’t
take $50,000.00 for that place.” Zehmer replied, “Yes, I would too; you wouldn’t give fifty.” Lucy said
he would and told Zehmer to write up an agreement to that effect. Zehmer took a restaurant check
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