Forming enforceable contracts—capacity


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Dispute Resolution expert
Practice notes

Forming enforceable contracts—capacity


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Dispute Resolution expert

Practice notes
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In English law, there is a presumption that everyone has a capacity to contract. However, if you are a minor or you lack the necessary mental capacity or you are a drunken person, that presumption will be rebutted and the contract will not be enforceable.

Capacity issues can also arise in relation to entities such, as for example, local authorities and their capacity to enter into certain kinds of transaction which may be confined by legislation.

This Practice Note sets out the scope of the capacity doctrine.

Capacity to contract—the general principle—presumption

The law presumes that everyone has a capacity to contract.

Any person seeking to rebut that presumption must strictly prove that they belong to one of three classes of individual:

  1. •

    a minor. For the purposes of the law of contract, a 'minor' is any person under 18 (section 1 of the Family Law Reform Act 1969)

  2. •

    a person lacking the requisite mental capacity

  3. •

    a drunken person

In the case of mental incapacity, abnormal weakness of mind as prevents a person from understanding

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Jurisdiction(s):
United Kingdom
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Key definition:
Contract definition
What does Contract mean?

A contract is a legally binding promise (oral or in writing) by one person to fulfil an obligation to another person in return for consideration. A binding contract comprises four elements: offer, acceptance, consideration and intention to create legal relations.

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