Lucy v. Zehmer

Facts

On the evening of December 20, 1952, Defendant was drinking alcohol in a bar and was approached by Plaintiff (an acquaintance of Defendant). Plaintiff was also drinking, and bought additional drinks for Defendant. The two began conversing, and Plaintiff offered to purchase a farm owned by Defendant for $50,000. Plaintiff had offered to purchase the same farm several times on previous occasions, and Defendant always refused. On this particular occasion, Defendant and Plaintiff spoke for forty minutes about Plaintiff’s purchasing the farm, and Defendant expressed doubt that Plaintiff could come up with the $50,000. Plaintiff stated he could, and invited Defendant to write out a contract for sale. Defendant drafted an agreement on the back of a bar receipt stating his intention to sell the farm to Lucy for $50,000. Plaintiff examined it, and requested that Defendant rewrite the agreement to include his wife’s agreement to sell the property, and have his wife signed it. Defendant obliged and asked his wife (who was also in the bar) to sign the agreement. When she initially refused, Defendant whispered to her that the whole matter was merely a joke. Defendant’s wife signed the agreement, but neither party communicated to Plaintiff that they intended it to be a joke. The agreement also contained a provision for examination of title, and a description of what would be included in the sale. Defendant completed the agreement and gave it to Plaintiff, who offered Defendant $5 to close the deal. At this point, Defendant realized Plaintiff was serious and stated that he intended the agreement to be a joke. Plaintiff left the bar, and had his brother helped him raise the $50,000 pursuant to the agreement. They were successful and upon completion of a title check, Plaintiff again stated his intention to purchase the farm from Defendant pursuant to their agreement. Defendant refused, and Plaintiff sued for specific performance. The trial court held Plaintiff was not entitled to specific performance, and Plaintiff appealed.