Contract Capacity and Legality
Who Can Enter a Contract?
Parties must possess legal capacity and enter agreements involving lawful subject matter. Contracts involving minors, mentally incompetent persons, or illegal activities may be void or voidable.
- Capacity of adults.
- Contracts involving minors.
- Mental competency.
- Intoxication.
- Illegal contracts.
- Public policy considerations.
Note
A contract may fail even if offer, acceptance, and consideration are present if legality or capacity is lacking.
Summary
Only legally competent parties may enter enforceable contracts involving lawful purposes.