Contracts are essential to everyday life, forming the foundation of agreements, transactions, and obligations. Yet, the capacity to contract is crucial for ensuring that these agreements hold legal value. In this post, we will explore the intricacies of contracting capacity, focusing on minors, individuals of unsound mind, those disqualified by law, and the importance of free consent. Understanding these concepts equips you to navigate the landscape of contract law with confidence.

Capacity to Contract

Capacity to contract refers to the legal ability of a person to enter into a binding agreement. To be valid, all parties must meet specific criteria, which typically exclude certain groups, including minors, individuals of unsound mind, and those legally disqualified.

Minor’s Agreements and Their Effects

In most jurisdictions, a minor is defined as someone under the age of 18. Contracts entered into by minors are generally considered voidable.

Key Points Regarding Minor's Agreements:

1. Voidable Contracts: A minor can choose to affirm or void a contract upon reaching the age of majority. For instance, if a 16-year-old signs a lease for an apartment, they can decide to enforce the lease or void it when they turn 18.