Question

Capacity to contract

Answer 1

Capacity to contract is the capacity of a person for entering in valid contract. It is legal capacity to perform some kind of acts. The persons which are short of lacks the capacity for entering in valid contract such as minors and people who are not mentally fit so that they can't understand the terms of capacity to contact. These types of people enters in the contract, then that people under many situations come back out.  

Answer 2

A person´s competency, as defined by law, to make a contract. Capacity to contract is typically determined by whether a person has attained majority age and is mentally capable of understanding the contract terms.