Contracts
Capacity refers to the legal ability of an individual or entity to enter into a contract, meaning they have the mental and legal competence to understand the terms and implications of their agreements. This concept is crucial because it helps to determine whether a contract is enforceable, ensuring that all parties involved have the necessary understanding and maturity to engage in contractual obligations. Factors affecting capacity include age, mental competency, and, in some cases, intoxication, making it a fundamental aspect in understanding the validity of contracts.
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