Contractual Capacity
/ˈkɒntræktʃuəl kəˈpæsɪti/
Definitions
- (n.) The legal ability of a party to enter into a binding contract, typically requiring sound mind and majority age.
Minors generally lack contractual capacity to be held liable under contracts.
- (n.) The competence required to understand the nature and consequences of a contract agreement.
Mental incapacity can negate contractual capacity and invalidate agreements.
Forms
- contractual capacity
Related terms
See also
Commentary
Ensure to assess both age and mental competence when determining contractual capacity.
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.