ABSTRACT
For a contract to be binding, it must be made by parties with the requisite capacity, that is, the legal ability to make the contract. There are several factors that may adversely affect a person’s ability to contract. A mentally ill person or a drunk may argue that they are not bound by a contract made during a period of illness or drunkenness. This argument would be based on the reasoning that, at the time of making the contract, they lacked the capacity to understand the implications of the contract and, therefore, should not be bound by the contract. In the case of minors, there may be no issue of the minor’s intelligence but the courts have expressed a desire to protect those that have not yet attained the age of majority.
