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What is capacity of contract?

Updated: 11/18/2022
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Lovelyshakya

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11y ago

Best Answer

the legal power to give consent

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11y ago
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Q: What is capacity of contract?
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What are the relevance of capacity to contract in a sale of goods contract?

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How can a deficiency in legal capacity related to contract formation be corrected?


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As for contract law, a person must be able to understand the nature and consequences of the contract when it is formed. Mental capacity refers to one's legal ability to enter into a contract. Your question is assumed to refer to a person who lacks mental capacity. A person who lacks mental capacity cannot understand the obligations under a contract and that makes the contract voidable in most cases.Also, a minor cannot make a valid contract in most cases.


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