NBE Arts Practice Exam 2025 – Your Complete All-in-One Guide to Exam Success

When an individual is intoxicated at the time of signing a contract, the legal principle of capacity to contract comes into play. A contract is considered voidable because the intoxicated party has the option to affirm or reject the agreement once they regain their capacity. This means they have the right to choose whether to uphold the contract or to void it based on their state of intoxication during the signing.

The rationale behind this is to protect parties who may not have been in a clear mental state to understand the implications of their actions when signing the contract. While the contract is not automatically void (meaning it has no legal effect) or valid (which would indicate it is enforceable as is), it is indeed voidable at the discretion of the intoxicated party. This provides them with recourse if they feel they were unable to give informed consent due to their condition.

Distinguishing it from being void or valid, a contract labeled as void would mean it has no legal effect from the outset, while a valid contract would bind all parties under standard conditions. The term "unenforceable" suggests that the contract cannot be upheld in a court of law for lack of legal capacity, but in the case of intoxication, it still holds the potential to be