Lucy v. Zehmer

A contract is based on mutual assent by the parties, i.e. that both the parties have the intention to enter into a legally binding promise. Historically, this was often referred to as requiring a “meeting of the minds.” Modern practice tends to look at the manifestation of a party's intent — what was communicated or is visible to others.

In the following case, the parties (plaintiff Lucy and defendant Zehmer) were drinking in a bar and Zehmer agreed to sell his farm to Lucy. A one-sentence contract to that effect was written on the back of a bar receipt and signed. Zehmer intended this as a joke, but such intention was not communicated to Lucy. When Zehmer later refused to consummate the transaction, Lucy sued for specific performance, asking the court to order that Zehmer give him the land for the agreed price. The trial court ruled against Lucy, and he appealed.

Supreme Court of Appeals of Virginia

196 Va. 493

Record No. 4272

1954-11-22

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