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The word capacity is subject to different meanings, but in the legal sense, it refers to the ability to make a rational decision based upon all relevant facts and considerations.

In criminal law, the defendant must have the capacity to understand the wrongfulness of his or her actions.

In making a will, the maker of the will must have what is known as "testamentary capacity," meaning that they must understand the nature of making a will, have a general idea of what he/she possesses, and know who the members of their immediate family, or the intended recepients of their estate, are..

The legal capacity to make contracts may be lacking in the case of minors or mentally disadvantaged persons. A contract signed by a person lacking legal capacity may be void.

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