Capacity to Contract
/ˌkæpəˈsɪdəti tə ˈkɒntrækt/
Definitions
- (n.) The legal ability of a party to enter into a binding contract, typically requiring sound mind, age of majority, and lawful purpose.
Minors generally lack the capacity to contract, rendering their agreements voidable.
Related terms
See also
Commentary
Capacity to contract is a foundational concept ensuring parties entering agreements have the legal qualifications to be bound; drafters should clearly confirm capacity to avoid unenforceability.
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.