Legal Capacity

/ˈliːɡəl kəˈpæsɪti/

Definitions

  1. (n.) The legal ability of an individual or entity to enter into binding contracts and to sue or be sued.
    Minors often lack full legal capacity to enter into contracts.
  2. (n.) The mental ability required to understand and engage in legal acts, including making decisions and managing affairs.
    Mental incapacity can affect a person's legal capacity to execute a valid will.

Commentary

Legal capacity varies by jurisdiction and context, often distinguished from competence, which is determined by courts; drafting should clarify the scope and threshold of capacity in agreements.

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.

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