BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Capacity to contract means the competency to enter into a valid contract legally. The capacity to contract binds the parties of the contract with a promise to oblige by it. But only certain persons have the competency or the capacity to make a contract.

Detailed explanation-2: -In the context of contract law, the term “capacity” denotes a person’s ability to satisfy the elements required for someone to enter binding contracts. For example, capacity rules often require a person to have reached a minimum age and to be of sound mind.

Detailed explanation-3: -if you have the capacity to contract, you have the ability or right to sign a legal agreement to show that you accept it: As far as age is concerned, a person who has reached 18 has the legal capacity to contract as an individual.

Detailed explanation-4: –Every person is competent to contract who is of the age of majority according to the law to which he is subject, 1 and who is of sound mind and is not disqualified from contracting by any law to which he is subject."

Detailed explanation-5: -In practice, legal capacity ensures that a person is recognized before the law and can make decisions about his or her own life, exercise rights, access the civil and court systems, enter contracts, and speak on his or her own behalf.