Legal Capacity

Legal capacity refers to an individual's ability to understand and agree to the terms of a contract or agreement. In the context of mutual consent, both parties must possess the mental competence to make informed decisions. This means they should know what they are agreeing to and the consequences of their agreement. Factors affecting legal capacity include age, mental condition, and influence or coercion by others. If one party lacks legal capacity, their consent may not be considered valid, potentially leading to disputes or the possibility of the agreement being unenforceable.