Contract Legal Capacity and Ability

Contract Legal Capacity and Ability

You may write your response in Question /Answer format or as an essay as long as you cover the points.
Legal capacity refers to a person’s ability to understand and enter into a contract. This capacity (ability) may be affected by (1) minority (infancy), (2) mental impairment (incompetence) or (3) intoxication.

Does the law treat each of these three conditions the same or are there differences?
Please discuss.Conditions Applicable in Each Case


  • Any contract entered between a minor and another party it is voidable by the minor or infant. Since minors are believed to lack contractual capacity, courts and statues grants them ability to exit the contract at their own discretion when deem it fit.
  • Other parties can be forced to enter into contract with minors if the contract involves the provision of necessary services like clothing, shelter, food and health (Weber, 2014).
  • Contracts like banking agreement terms are binding to the minor meaning they are subjected to penalties and fees like other customers.
  • Minors can enter into employment contract, but with the approval of the court to prevent them from voiding the contract in future. For infants, the parents can enter into contract their behalf. In this case, the contract becomes binding to the child (Weber, 2014).
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