Contractual Capacity

Contractual capacity, by definition, is the state or ability of an individual to enter into a legally binding contract or agreement. The contractual capacity of a person to an agreement or contract may be affected by the mental state of the person, which means their mental retardation or limitations, or by their age, or being under the influence of an intoxicating substance such as alcohol or medication or any of the other factors defined by the legislation of that particular country.