What is contractual incapacity?

Contractual incapacity refers to a person's legal inability to enter into a binding contract. This can arise due to factors such as age (minors), mental incompetence, intoxication, or certain legal disabilities. Individuals deemed incapable of understanding the nature and consequences of their actions are protected from being held to agreements they cannot fully comprehend. Consequently, contracts entered into by such individuals may be void or voidable.