A contract made while under the influence of alcohol is considered to be what?

Prepare for the Michigan Builders License Exam. Study with flashcards and multiple choice questions, each question having hints and explanations. Get ready for your exam!

A contract made while under the influence of alcohol is considered unenforceable because individuals must have the mental capacity to understand the nature and consequences of the agreement they are entering into. When someone is significantly impaired by alcohol, their ability to comprehend the terms of the contract and the implications of their decisions may be compromised. As a result, the law recognizes that such contracts cannot be enforced, as it is essential for a contract to be formed between parties who are capable of making informed agreements.

The notion of enforceability hinges on the premise that both parties in a contract must have sound judgment at the time of entering the agreement. If one party is intoxicated to the point that they cannot understand what they are agreeing to, the contract is labeled unenforceable, mitigating the risk of exploitation or unfair advantage. This principle helps protect parties from potential harm and maintains the integrity of contractual agreements.

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