Capacity to Contract Means

question 35

Multiple Choice

Capacity to contract means

• A)the ability to make an offer or accept an offer.
• B)the competence to enter into a legally binding contract.
• C)the ability to pay damages in the event of a breach of contract.
• D)the ability to make a promise.
• E)the ability to comprehend the terms of a contract.

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Definitions:

Non-binding Agreement

An agreement between parties that does not legally enforce compliance but is made to signify a mutual understanding or intention.

Case Law

Law established by previous court decisions and based on interpretations of statutes, legal principles, and precedents rather than statutes alone.

Statutory Law

Written laws passed by a legislative body at the federal, state, or municipal level, codified and enforceable by government authorities.

Business Law

A broad area of law that deals with the legal aspects of business operations, including contracts, sales, employment, and property rights.