Contractual Capacity

Contractual capacity refers to the legal ability of individuals to enter into agreements or contracts. To have this capacity, one must be of a certain age (usually 18 years or older), mentally competent, and not under duress or undue influence. If a person lacks capacity, such as due to mental incapacity or being a minor, they may not be held accountable for the contract. This principle ensures that all parties involved understand the terms and can make informed decisions, promoting fairness in contractual relationships.