In 1954, the Supreme Court of Virginia faced the questions of mental incapacity and mutual assent in the famous caseLucy v. Zehmer.Mr. Lucy and Mr. Zehmer had known each other about 20 years, and Lucy had tried several times to buy from Zehmer several acres known as the Ferguson Farm. On the Saturday afternoon before Christmas 1952, several friends and neighbors had visited Zehmer at the restaurant he and his wife ran, and he had "a good many drinks." Lucy stopped by the restaurant at about 8:30P.M., taking a partial bottle of whiskey with him to offer Zehmer a drink. Zehmer subsequently testified: "I was already high as a Georgia pine, and didn't have any more better sense than to pour another great big slug out and gulp it down, and he took one too." After the men started drinking Lucy said, "I bet you wouldn't take $50,000" for the Ferguson Farm. Zehmer replied, "Yes, I would too; you wouldn't give fifty" and said he doubted Lucy had that much money in cash. For about 40 minutes, the men continued to drink, joke, and intermittently discuss the Ferguson Farm. Lucy again said he would pay $50,000 and told Zehmer that if he didn't believe it, he should write up an agreement to that effect. Zehmer wrote on the back of a restaurant check, "I do hereby agree to sell to W. O. Lucy the Ferguson Farm for $50,000 complete." Lucy told him he should change "I" to "We" to account for Zehmer's wife. Upon viewing the writing at trial, Zehmer exclaimed, "Great balls of fire, I got 'Firgerson' for Ferguson. I have got satisfactory spelled wrong. I don't recognize that writing if I would see it, wouldn't know it was mine."According to Zehmer's testimony, Lucy said, "Get your wife to sign it." Zehmer then tore up what he had written and rewrote it to include Mrs. Zehmer and also to include a provision for title examination, at Lucy's suggestion. After the rewrite, Zehmer asked his wife, who was busy working in the restaurant, to sign it. Zehmer testified that at first his wife did not want to sign, but then he told her it was just a joke and she signed. (Mrs. Zehmer testified that she read before signing and thought it was a cash sale that night, subject to clear title.)After Zehmer's wife signed, Zehmer brought it back and gave it to Lucy, who offered him $5, which Zehmer refused. Lucy testified that Zehmer said, "You don't need to give me any money, you got the agreement there signed by both of us." However, Zehmer testified that when he refused the $5, he told Lucy "Hell no,...that is beer and liquor talking. I am not going to sell you the farm. I have told you that too many times before." All witnesses confirmed a significant amount of alcohol was or appeared to be consumed by both men. Zehmer characterized the situation as "just a bunch of two doggoned drunks bluffing to see who could talk the biggest and say the most.The next day, Lucy began preparations to buy the farm, and shortly thereafter, he retained legal counsel to examine the title. When a clean report of title returned, he wrote to Zehmer to arrange a closing and to confirm that he was ready to pay in cash. Zehmer replied that he never agreed to sell Ferguson Farm.Lucy sued for specific performance of the contract. The Zehmers claimed that the writing "was prepared as a bluff or dare to force Lucy to admit that he did not have $50,000; that the whole matter was a joke; that the writing was not delivered to Lucy and no binding contract was ever made between the parties."The Supreme Court of Virginia held that Lucy was entitled to specific performance and ordered the transfer of the farm to Lucy in exchange for $50,000. There was agreement to sell Ferguson Farm, and "Zehmer was not intoxicated to the extent of being unable to comprehend the nature and consequences of the instrument he executed, and hence that instrument is not to be invalidated on that ground."Lucy v. Zehmer, 84 S.E.2d 516 (Va. 1954).

Reason and decision