When drinking (or otherwise impaired), people often make unbelievably poor

choices. This, of course, leads to common problems like drunk driving and
regrettable tattoos. Other times, it could lead to problematic legal relationships. This
leads many to ask, “Is a contract valid if I signed it while I was drunk (or otherwise
impaired)?”

Fortunately, the answer is usually “no.” Unfortunately, as with most things in the law, the
answer is not as straightforward as a simple yes or no. This is because the law seeks to
balance the interests of the drunk contract signer against the rights of the presumably sober
second party to the contract. Would it be fair or in the interest of public policy to allow
everyone to escape any contract simply by claiming they were drunk at the time of making
it? Of course not.

Under the law, contracts require a few things to be created in the first place. Specifically,
there must be an offer by one party which is accepted by the other, both parties must agree
to the material terms of that agreement (often called a “meeting of the minds”), and there
must be an exchange of something of value (often called “consideration”). Moreover, the
terms of the agreement need to be sufficiently clear and definite so the court has a way to
enforce them. If a person was drunk or impaired at the time of entering into a contract, there
may not have been a meeting of the minds as the drunken party may have been incapable
of understanding to what he or she was agreeing. 

If a court finds that a contract did, in fact, come into existence, the drunken party then needs
to show defenses as to why it should not be enforced. Contract defenses protect one party
from unfair terms or bargaining conditions. Thus, impairment could create such a defense,
and the impaired party would argue that he or she lacked the capacity to contract due to the
impairment. In this case, the court may rule the contract voidable (as opposed to void),
making it possible for the impaired party to avoid the contract if it chooses to do so. Other
defenses may include undue influence, duress, misrepresentation, unconscionability,
illegality, mistake, violation of public policy, and more.

Of course, once this is claimed, the other party is not completely without recourse, itself.
After all, if that party had no way to know that the drunk or impaired person was not sober, it
may have suffered a harm by entering into the contract and performing in good faith despite
the other party’s impairment. Thus, it may bring claims sounding in equity (i.e., fairness
under the law) called “quasi-contractual claims.” Quasi-contractual claims include things like
unjust enrichment, quantum meruit, and others. In essence, they are claims that allow a
party to recover when it has, in good faith, performed as though a contract existed, even if it
did not or if the contract was void or voidable.

Thus, while one may be able to return a car and avoid the financing contracts (provided
everything is returned in good condition) if the documents were signed while impaired,
someone who hires somebody to perform a service (like painting the house) cannot avoid
all liability for the contract simply by claiming to have been drunk at the time it was created.
Instead, the painter would sue under a quasi-contractual theory, claiming that the drunken
contract maker appeared sober, gained the benefit of the work, and should, therefore, be
obligated in fairness to pay for it.

There may also be some criminal issues, if it can be shown that the party attempting to
induce the impaired person into a contract was intentionally taking advantage. Additional
theories of both enforcing and avoiding the contract may also exist depending on the exact
circumstances of the transaction. As a result, the only way to ensure that one has
adequately protected his or her rights in these (hopefully) somewhat unusual circumstances
is to speak with a well experienced, licensed attorney in the state where the contract was
purportedly created. Fortunately, you can find an attorney simply by visiting HG.org’s lawyer
search page and performing a query based on geographical location and area of practice.
Only by speaking with a legal professional can one ensure that they have fully protected
themselves from the consequences in one of these situations.

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