CAPACITY TO CONTRACT

  • Definition of Capacity: Legal ability to enter a contract; essential for validity.

  • Legal Implications: Most individuals can contract, but protections exist for certain groups (minors, mentally incapacitated, intoxicated persons).

  • Void vs. Voidable Contracts:
      - Void contracts: No legal effect, parties are restored to their pre-contract position.
      - Voidable contracts: Enforceable until rescinded by the party with the right to do so.

  • Minors' Capacity: Generally voidable until majority age; contracts for necessaries or beneficial contracts of service are exceptions.

  • Necessaries Defined: Goods necessary for a minor's life (e.g., food, clothing); suitability depends on minor's lifestyle.

  • Mental Incapacitation: Contracts voidable if the individual lacked capacity at the time and the other party knew.

  • Intoxication: Contracts entered while intoxicated are voidable, subject to ratification upon sobriety.

  • Recap of Key Groups Lacking Capacity:
      - Minors
      - Intoxicated individuals
      - Mentally incapacitated individuals

  • Overall Aim: Protect vulnerable individuals from disadvantageous contracts due to lacking capacity.