Incapacity or Incompetence

Incapacity or incompetence in contract law refers to a person’s inability to understand the terms of a contract or make informed decisions. This can happen due to various reasons, such as being a minor, having a mental illness, or being intoxicated. If a person is deemed incompetent at the time of entering the contract, they may not be held legally responsible for their commitments, allowing them to void the contract. Essentially, the law protects individuals who cannot fully grasp the consequences of their actions, ensuring fairness in contractual agreements.