Lucy v. Zehmer Case Flashcards

Procedural Context

• Circuit court ruled in favor of defendants; decision was appealed by Lucy.

Issue

• Question of whether mental assent from parties is necessary for contract formation.

Holding

• Case was reversed and remanded.
• Court ruled that mental assent is not required for contract formation.
• Complainants entitled to specific performance of the contract.

Facts

• Lucy alleged a contract to buy 'Ferguson Farm' for $50,000 from A.H. Zehmer and Ida S. Zehmer.
• Written agreement was created on December 20, 1952, signed by both Zehmers.
• Conversation leading to the agreement lasted 30-40 minutes, involving drinks.
• Zehmer initially claimed the deal was a joke and denied intent to sell.
• Lucy insisted he had made a real purchase; both defendants denied serious intent.

Rule

• Court emphasized looking at outward expressions of intention rather than unexpressed intentions.
• Valid contract requires mutual assent, interpreted through reasonable meanings of words and actions.
• Hidden intentions are irrelevant unless known to the other party and manifest unreasonable meanings.

Reasoning/Rationale

• Contract remained binding regardless of seriousness of Zehmer's acceptance.
• Zehmer deemed sober enough to comprehend the contract's nature.
• Factors supporting seriousness of contract: lengthy discussions, amendments to the agreement, and actions indicating no intent to retract.
• Zehmer's comments about it being a joke were not communicated to Lucy prior to contract execution.
• Execution and delivery of a written contract underscored a sincere business transaction.

Main Take Away

• Case establishes the objective standard of assent in contract law, focusing on visible actions and declarations over internal thoughts.