Latin

Capacity to Contract

kuh-PASS-i-tee to KON-trakt
The legal ability of a person or entity to enter into a binding contract. This typically requires that the individual or entity be of legal age, sound mind, and not under duress or undue influence.
The court questioned the defendant's capacity to contract due to their young age and lack of understanding of the agreement's terms.
Ortelere v. Teachers' Retirement Bd. (1969)
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Frequently Asked Questions

What factors determine a person's capacity to contract?

Age, mental capacity, and the absence of coercion or undue influence are key factors.

What happens if a contract is entered into with someone lacking capacity?

The contract may be voidable by the party lacking capacity, meaning they can choose to either enforce or cancel the contract.

Can a person's capacity to contract change over time?

Yes, capacity to contract can change due to factors such as age, mental illness, or intoxication.

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