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Capacity to contract

In order to enter into a legally binding contract all individuals must have the ability to take on board and process the necessary information which would allow them to make an informed decision, this is called capacity to contract.

In certain circumstances it may be considered that an individual doesn’t have the capacity to contract, and this may be due to;

  • Age
  • Ill health
  • Disability

 In these instances, the trader may not be able to enforce a contact.

Proving whether there was capacity to contract can be difficult and may require medical evidence, it may also require a judge to look at the evidence and make a decision on whether they believe the contract to be enforceable.

Last updated: 18 July 2019

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