Formation and Enforcement Defense IRAC

IRAC Writing # 2
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IRAC Writing # 2
Formation Defense
Issue
Under common law, does Mrs. Murphy have a formation defense for the business contract she entered into with Don Julio to give him her business equity?
Rule
Undue influence occurs whenever an individual or entity persuades the other party to approve a contract or agreement. Notably, this takes place when the vulnerable or weaker party can be persuaded to take such action.
Capacity – specific parties are regarded as unable to reach an agreement if they are intoxicated: the contract can be deemed void and null when the other party understands the other party's condition.
Analysis
Suppose a party takes advantage of its susceptibility to persuasion to coerce them into entering a contract, which constitutes a formation defense. Also, if any party agrees while intoxicated and the other party knows of this, the agreement is voidable. "Three days after Don Julio started seeing Mrs. Murphy, Don Julio began to take special notice on Mrs. Murphy's business empire. One afternoon, after a long day of exploring the hills of California, Don Julion gave Mrs. Murphy a bottle of 1986 Graud Larose Wine. They began to drink the bottle, and after a few glasses of wine, Mrs. Murphy began to tell Don Julio how passionate she was about having him around. Don Julio gave Mrs. Murphy a piece of paper and asked her to acknowledge that because of his time with Mrs. Murphy that he is entitled to all of Mrs. Murphy's business equity from her business empire. He also told Mrs. Murphy that he would leave her to die alone and never talk to her again if she did not sign it. After much hesitation, Mrs. Murphy scribbled her signature on the document and told Don Julio, "we can be together forever now. "
Don Julion forced Mrs. Murphy to agree by threatening that he would desert her. He took advantage of her loneliness and desire for attention to coerce her into agreeing. Given her loneliness and want for attention, Mrs. Murphy had no other reasonable alternative but to enter the contract. Besides this instance of undue influence formation defense, the other is intoxication. Before making his proposal, Don Julio had offered Mrs. Murphy a bottle of 1986 Graud Larose Wine, and they had already consumed several glasses of wine. It is a fair assumption that Mrs. Murphy was intoxicated when agreeing and did not have sufficient mental competence to enter into the contract. Even though the contract is valid and there are no formation problems, Mrs. Murphy was coerced into agreeing. She was lonely and in need of attention, two needs that made her susceptible to persuasion.
Moreover, when signing the agreement, Mrs. Murphy was intoxicated and did not have sufficient mental competence to enter into the contract. Therefore, although she voluntarily imbibed the 1986 Graud Larose Wine given to her, Mrs. Murphy was mentally impaired and should not be held responsible for fulfilling the contract. On these facts, the court will most likely find that the contract should not have been formed.
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