Two corporate executives hold a meeting to discuss the licensing of a major product from one to

another. As is their usual custom for such negotiations, they hold their meeting in a sushi den

specializing in the finest sakes and get roaring drunk. The next day, one of the executives tried to back out of the deal claiming he was drunk and lacked the capacity to contract. Is the contract

valid or not?

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Li Chen sues Rebecca Stevens for conversion of her pearl necklace. In her defense, Stevens

claims the pearl necklace rightly belongs to her as she bought Chen in China to serve as a

housekeeper. Upon reaching the U.S., however, Chen left Stevens's service, but Stevens kept all

of Chen's belongings, including the pearl necklace. Stevens claims that, according to the

purchase contract, if Chen should refuse to serve Stevens at any point, Chen would forfeit all her

belongings to Stevens. Will Stevens get to keep the pearl necklace? Explain

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