Question

All parties are presumed to have the legal capacity to enter into contracts. But certain persons, for reasons of public policy or some disability, do not have full contractual capacity. All of these do not have contractual capacity except:_________
a) minors
b) mental impairment
c) intoxicated persons
d) a person over eighty years old

Answer 1

Answer: option D is the correct option.

Explanation:

The legal capability of individuals to form a binding contract is known as contractual capacity. Those that do not have contractual capacity are those with mental deficiencies and minors.

From the explanation above , we can that option (a) and option (b), that is minors and mental impairment respectively do not have contractual capacity.

For option (c), intoxicated persons are also not in their correct state of mind, so, they also do not have contractual capacity.

For option (d), person over eighty years old can have contractual capacity. In as much as the person is in his or her right

state of mind.

Additionally, in many countries all over the world, one has to be eighteen years of age and above in order to be able sign a binding contract.