Capacity
/kəˈpæsɪti/
Definitions
- (n.) The legal ability of a person or entity to enter into binding contracts or to sue and be sued.
The contract was void because the minor lacked capacity.
- (n.) The maximum amount that something can contain or produce, often regarding legal rights or powers.
The corporation increased its capacity to issue shares.
Related terms
See also
Commentary
Capacity is distinct from competence, which may include mental ability; capacity often focuses on legal qualifications to act.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.