10701 Corporate Dr. Ste 340-104, Stafford, TX 77477

logo
  • Home
  • Contact Us
  • About Us
  • Practice Area Overview
    • Asset Protection
    • Business Law Services
      • Business Formation
      • Business Contracts
      • Documents for Startup Businesses
    • Estate Planning
    • Wills and Trusts
  • Blog
  • Contact Us

When Will a Party to a Contract Lack Legal Capacity?

October 6, 2022 by Sandra Ighalo

What Situations Involve a Potential Lack of Contractual Capacity?

For a contract to be binding and enforceable, the parties to that contract must both have what is known as “contractual capacity.” What does that mean? When might a person fail to have the requisite contractual capacity?

What Is Contractual Capacity?

One of the fundamental requirements of contract law is that the parties willingly enter into an agreement. To do that, they must understand first that they are entering into a binding legal contract, and, additionally, what the terms of that contract will be. Contractual capacity therefore refers to the ability of all parties to an agreement to have the necessary mental acuity to know what a contract is, know that they are entering into a contract, and know what their rights and responsibilities will be.

What Factors Suggest a Lack of Capacity?

Under the laws of Texas, as in all states, there are three instances where a party to a contract may lack legal capacity:

  • The party was legally a minor at the time the contract was executed
  • The party was mentally ill or had mental deficiencies that prevented them from understanding the contract
  • The party was intoxicated or under the influence of drugs and could not understand what was happening

With a party who was allegedly intoxicated or mentally disabled, it must be shown that the impact of that was such that they could not reasonably understand that they were committing to a contract, nor understand the terms of the agreement.

The Rules Governing Contracts with Minors

A minor (anyone under the age of 18) in Texas can typically choose to either honor or void a contract entered into before reaching the age of majority. The legal term for choosing to void such an agreement is “disaffirming” a contract. As a general rule, a minor may disaffirm a contract while still a minor or for a reasonable period of time after becoming an adult. A minor may not, however, disaffirm a contract for certain types of goods or services, such as food, clothing or lodging, which are legally referred to as “necessaries.”

Contact MCIS Law

At MCIS Law, PLLC, in Stafford, we provide comprehensive counsel to businesses in southeast Texas. For a confidential consultation with an experienced and knowledgeable lawyer, email us or call our office at (346) 297-0121. We accept all major credit cards.

Filed Under: Business Contracts Tagged With: When Will a Party to a Contract Lack Legal Capacity?

Request A Consultation

  • This field is for validation purposes and should be left unchanged.

Disclaimer

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • March 2019
  • February 2019
  • January 2019
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • June 2018

Contact us

MCIS Law,PLLC

Address:

10701 Corporate Dr. Ste 340-104,
Stafford, TX 77477

Phone:

(346) 297-0121

  • Facebook
  • Twitter
  • Linkedin

Request A Consultation

  • Home
  • About Us
  • Practice Area Overview
  • Blog
  • Contact Us
footer-logo

© 2021 MCIS Law, PLLC All Rights Reserved.
Sitemap | Disclaimer