Capacity

Definition of capacity: Capacity refers to a person's legal ability to enter into a contract.

Minors and contracts: Minors are individuals who have not yet reached the age of majority, and as such, their capacity to enter into contracts is limited.

Mental capacity: Mental capacity refers to a person's ability to understand the nature and consequences of the contract they are entering into.

Intoxicated individuals: Intoxicated individuals may lack the capacity to enter into a contract if their intoxication impairs their ability to understand the contract's terms and consequences.

Duress: A person who enters into a contract under duress may lack the capacity to do so because their consent was coerced.

Undue influence: A person who is subject to undue influence may lack the capacity to freely enter into a contract.

Capacity of corporations: Corporations have legal capacity to enter into contracts, but their capacity may be limited by their articles of incorporation.

Capacity of partnerships: Partnerships have legal capacity to enter into contracts, but their capacity may be limited by the partnership agreement.

Capacity of limited liability companies: Limited liability companies have legal capacity to enter into contracts, but their capacity may be limited by the operating agreement.

Capacity of government entities: Government entities have legal capacity to enter into contracts, but their capacity may be limited by statute or regulation.

Actual Capacity: This refers to the ability of a person to enter into a contract based on their age, mental capacity, and legal status.

Legal Capacity: This means that a person has the legal authority to enter into a contract based on their status (e.g., a corporation or a sole proprietor).

Mental Capacity: This is the ability of a person to understand the terms of the contract and the consequences of entering into it.

Age Capacity: This refers to the minimum age requirement for individuals to enter into certain types of contracts. For example, a person must be 18 years old to enter into a contract.

Physical Capacity: This refers to the ability of a person to physically sign a contract.

Authority Capacity: This refers to the authority of a person to represent an organization or company and enter into a contract on their behalf.

Subjective Capacity: This refers to the personal willingness of a person to enter into a contract and their understanding of the terms involved.

Objective Capacity: This refers to the reasonable expectations that one party might have regarding the other party's ability to enter into the contract.

Unilateral Capacity: This refers to the capacity of one party to enter into or repudiate a contract.

Bilateral Capacity: This refers to the capacity of both parties to enter into or repudiate a contract jointly.

Legal Disability Capacity: This refers to the incapacity of a person to enter into a contract due to a legal disability, such as being in prison or declared mentally unsound.

Limited Capacity: This refers to the capacity of a person to enter into a contract with certain limitations, such as minors or mentally disabled people.