Commentary

49.1 Different meanings of ‘capacity’

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

49.1 Different meanings of ‘capacity’

| Commentary

49: CAPACITY

(For clauses relating to capacity see Form 49.1 [1851] onwards.)

49.1 Different meanings of ‘capacity’

The question of ‘capacity’ can arise in the following circumstances:

  1. (a)

        Contracts with minors and mentally disordered persons are generally not enforceable because such persons do not have the legal capacity to enter into contracts (except for necessaries such as food)1. These categories are rarely encountered in the commercial context.

  2. (b)

        There may be a question as to whether a legal entity (for example a company), has the capacity to enter into a contract. This issue is unlikely to arise in the case of the

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