Business law: Robert Thomas entered into an agreement with License Realty Corp.
ID: 351859 • Letter: B
Question
Business law:
Robert Thomas entered into an agreement with License Realty Corp. to lease a building for 20 years. The lease also included an option to purchase the property. Richard DeSouza, an alcoholic undergoing treatment, singed the lease on behalf of License Realty. Eleven years later, Thomas exercised his option to purchase the property. The owner refused to sell and stated that DeSouza lacked the capacity to sign the contract for License Realty, due to his alcoholism. Was the contract voidable?
Explanation / Answer
In this case Richard DeSouza who is supposedly an alcoholic undergoing treatment signed the lease on behalf of License Realty, in these cases the contract may get void if the person signing is intoxicated at the time of signing but in this case it is not the issue because the person is going through a treatment and there was a time of 11 years. Robert Thomas after these eleven years exercised his option to purchase the property which was justified and now the contract cannot be made void because Richard DeSouza was an alcoholic.
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