What persons contractual capacity refers to?

A person's contractual capacity refers to their legal ability to enter into a binding contract. This capacity is typically determined by age, mental competency, and the influence of substances. Generally, individuals must be of legal age, usually 18 years or older, and possess the mental capacity to understand the terms and implications of the contract. Those lacking capacity, such as minors or individuals with mental impairments, may have limited ability to enforce agreements.