Understanding Business and Personal Law

Chapter 7: Contractual Capacity

Chapter Overviews

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Capacity is the legal ability to enter into a contract. Minors have particular rights and obligations established by the courts when it comes to contracts. Once a person reaches age 18, they are considered to have reached legal adulthood in every state in the nation. In addition to minors, other persons are able to avoid contracts. Mentally impaired and intoxicated people, convicts, and aliens lack the capacity to enter into a contract. In this chapter, you will learn valuable information that will help you exercise your rights as a minor and as an adult.