Legal Capacity to Contract

Legal capacity to contract refers to a person's ability to enter into a legally binding agreement. To have this capacity, an individual must be of a certain age (usually 18 or older), mentally competent, and not under the influence of drugs or alcohol. If someone lacks this capacity, such as minors or individuals with severe mental impairments, contracts they enter may be void or voidable, meaning they are not legally enforceable. Essentially, legal capacity ensures that all parties involved in a contract understand their rights and obligations when making an agreement.