contractual capacity

Definition

The legal capability to form a binding contract. A number of classes of people lack contractual capacity, and these include minors, the mentally challenged, those under the influence of an intoxicating substance and incarcerated convicts.

Use this term in a sentence

  • The contractual capacity of the agreement was firm as there was no more room for negotiations so the project proceeded as planned.

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  • You should make sure that you can fully handle anything in the contractual capacity so that you keep your good business reputation.

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  • The boy knew how to deliver the products the company wanted, but, unfortunately, he lacked the contractual capacity to work with them.

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