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In contract law, what does 'capacity' refer to?

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Question: In contract law, what does \'capacity\' refer to?

Options:

  1. The ability to perform contractual duties
  2. The legal ability to enter into a contract
  3. The financial ability to fulfill a contract
  4. The ability to negotiate terms

Correct Answer: The legal ability to enter into a contract

Solution: 

Capacity refers to the legal ability of a party to enter into a contract.

In contract law, what does 'capacity' refer to?

Practice Questions

Q1
In contract law, what does 'capacity' refer to?
  1. The ability to perform contractual duties
  2. The legal ability to enter into a contract
  3. The financial ability to fulfill a contract
  4. The ability to negotiate terms

Questions & Step-by-Step Solutions

In contract law, what does 'capacity' refer to?
  • Capacity – The legal ability of a party to enter into a contract, which can be affected by factors such as age, mental state, and legal status.
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