Lucy v. Zehmer
Encyclopedia
Lucy v. Zehmer, 196 Va. 493; 84 S.E.2d 516
(1954) was a court case
in the Supreme Court of Virginia
about the enforceability of a contract
based on outward appearance of the agreement. It is commonly taught in first-year contract law classes at American law schools
.
Ida S. Zehmer owned a tract of land consisting of 471.6 acres (1.9 km²) in Dinwiddie County, Virginia
known as the Ferguson Farm. Plaintiff W. O. Lucy had known Zehmer for many years and had previously expressed interest in purchasing the farm
. Some years prior to this case, Zehmer had agreed verbally to sell the farm to Lucy, but later reconsidered and declined to complete the sale. On December 20, 1952, Lucy entered the restaurant owned by Zehmer with a bottle of whiskey in his hand. He and Zehmer consumed a significant quantity of distilled spirits
and discussed the possible sale of the farm. Zehmer wrote a note stating simply "We hereby agree to sell to W. O. Lucy the Ferguson Farm complete for $50,000.00, title
satisfactory to buyer
". The note was signed by Zehmer and his wife. Zehmer later alleged that his wife had initially balked at his request that she sign the instrument, but she relented when Zehmer assured her that his intent to sell the farm was merely in jest
.
The next day, Lucy spoke to his brother, J.C. Lucy, about the purchase, and hired an attorney to examine the title. After the attorney assured Lucy that the title was clear, Lucy wrote a letter to Zehmer asking when he intended to close the deal
. In his reply, Zehmer insisted that he had never intended to sell the farm and that the note signed by him and his wife was written in jest, consistent with the jovial atmosphere and drunken camaraderie the parties were sharing that evening. Zehmer claimed on the witness stand that the circumstances were such that Lucy should have known he was too inebriated to agree to the sale. Deposition
s were taken and the decree appealed from was entered holding that the complainants had failed to establish their right to specific performance, and dismissing their bill.
, who had served on the Supreme Court of Virginia since 1946, wrote for the majority and held that the record suggested that Zehmer was not intoxicated to the point of being unable to comprehend the nature and consequences of the instrument he executed, and that the circumstances surrounding the transaction were such that Lucy was justified in believing that it was a serious business transaction, rather than a mere jest. On this latter point, Buchanan quoted from the Restatement (First) of Contracts
:
Buchanan further held that specific performance
was the proper remedy for the plaintiff.
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1954) was a court case
Legal case
A legal case is a dispute between opposing parties resolved by a court, or by some equivalent legal process. A legal case may be either civil or criminal...
in the Supreme Court of Virginia
Supreme Court of Virginia
The Supreme Court of Virginia is the highest court in the Commonwealth of Virginia. It primarily hears appeals from the trial-level city and county Circuit Courts, as well as the criminal law, family law and administrative law cases that go through the Court of Appeals of Virginia. It is one of...
about the enforceability of a contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
based on outward appearance of the agreement. It is commonly taught in first-year contract law classes at American law schools
Law school in the United States
In the United States, a law school is an institution where students obtain a professional education in law after first obtaining an undergraduate degree.Law schools in the U.S...
.
Facts
Defendant A. H. Zehmer and his wifeWife
A wife is a female partner in a marriage. The rights and obligations of the wife regarding her spouse and others, and her status in the community and in law, varies between cultures and has varied over time.-Origin and etymology:...
Ida S. Zehmer owned a tract of land consisting of 471.6 acres (1.9 km²) in Dinwiddie County, Virginia
Dinwiddie County, Virginia
Dinwiddie County is a county located in the Commonwealth of Virginia. As of 2010, the population was 28,001. Its county seat is Dinwiddie.- History :...
known as the Ferguson Farm. Plaintiff W. O. Lucy had known Zehmer for many years and had previously expressed interest in purchasing the farm
Farm
A farm is an area of land, or, for aquaculture, lake, river or sea, including various structures, devoted primarily to the practice of producing and managing food , fibres and, increasingly, fuel. It is the basic production facility in food production. Farms may be owned and operated by a single...
. Some years prior to this case, Zehmer had agreed verbally to sell the farm to Lucy, but later reconsidered and declined to complete the sale. On December 20, 1952, Lucy entered the restaurant owned by Zehmer with a bottle of whiskey in his hand. He and Zehmer consumed a significant quantity of distilled spirits
Distilled beverage
A distilled beverage, liquor, or spirit is an alcoholic beverage containing ethanol that is produced by distilling ethanol produced by means of fermenting grain, fruit, or vegetables...
and discussed the possible sale of the farm. Zehmer wrote a note stating simply "We hereby agree to sell to W. O. Lucy the Ferguson Farm complete for $50,000.00, title
Title (property)
Title is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document that serves as evidence of ownership...
satisfactory to buyer
Buyer
When someone gets characterised by their role as buyer of certain assets, the term "buyer" gets new meaning:A "buyer" or merchandiser is a person who purchases finished goods, typically for resale, for a firm, government, or organization...
". The note was signed by Zehmer and his wife. Zehmer later alleged that his wife had initially balked at his request that she sign the instrument, but she relented when Zehmer assured her that his intent to sell the farm was merely in jest
Joke
A joke is a phrase or a paragraph with a humorous twist. It can be in many different forms, such as a question or short story. To achieve this end, jokes may employ irony, sarcasm, word play and other devices...
.
The next day, Lucy spoke to his brother, J.C. Lucy, about the purchase, and hired an attorney to examine the title. After the attorney assured Lucy that the title was clear, Lucy wrote a letter to Zehmer asking when he intended to close the deal
Closing (real estate)
Closing is the final step in executing a real estate transaction.The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the parties consummate the purchase contract, and ownership of the property is transferred...
. In his reply, Zehmer insisted that he had never intended to sell the farm and that the note signed by him and his wife was written in jest, consistent with the jovial atmosphere and drunken camaraderie the parties were sharing that evening. Zehmer claimed on the witness stand that the circumstances were such that Lucy should have known he was too inebriated to agree to the sale. Deposition
Deposition
Deposition or Depose may refer to:* Deposition , taking testimony outside of court* Deposition , molecules settling out of a solution...
s were taken and the decree appealed from was entered holding that the complainants had failed to establish their right to specific performance, and dismissing their bill.
Decision
Judge BuchananArchibald C. Buchanan
Archibald C. Buchanan was born in Tazewell, Virginia. He received his higher education at Hampden-Sydney College and Washington and Lee University. . He was admitted to the bar and began practice in Tazewell, where he was mayor from 1917 to 1921 and commissioner of accounts from 1919 to 1927...
, who had served on the Supreme Court of Virginia since 1946, wrote for the majority and held that the record suggested that Zehmer was not intoxicated to the point of being unable to comprehend the nature and consequences of the instrument he executed, and that the circumstances surrounding the transaction were such that Lucy was justified in believing that it was a serious business transaction, rather than a mere jest. On this latter point, Buchanan quoted from the Restatement (First) of Contracts
Restatement of the Law
In American jurisprudence, the Restatements of the Law are a set of treatises on legal subjects that seek to inform judges and lawyers about general principles of common law...
:
The mental assent of the parties is not requisite for the formation of a contract. If the words or other acts of one of the parties have but one reasonable meaning, his undisclosed intention is immaterial except when an unreasonable meaning which he attaches to his manifestations is known to the other party.
Buchanan further held that specific performance
Specific performance
Specific performance is an order of a court which requires a party to perform a specific act, usually what is stated in a contract. It is an alternative to award/ for awarding damages, and is classed as an equitable remedy commonly used in the form of injunctive relief concerning confidential...
was the proper remedy for the plaintiff.
External links
- Full text opinion in PDF format from Virginia Polytechnic Institute and State UniversityVirginia Polytechnic Institute and State UniversityVirginia Polytechnic Institute and State University, popularly known as Virginia Tech , is a public land-grant university with the main campus in Blacksburg, Virginia with other research and educational centers throughout the Commonwealth of Virginia, United States, and internationally.Founded in...
- Abbreviated version of case
- Entry on ContractsProf blog about 50th anniversary of the decision