Can a Contract Be Voided If One Party Lacks 'Capacity'? ⎊ Path

Can a Contract Be Voided If One Party Lacks ‘Capacity’?

Yes, if a party to a contract lacks the legal capacity to enter into an agreement, the contract is typically voidable by that party. Lack of capacity can stem from being a minor, being mentally incapacitated, or lacking the proper corporate authority.

In a smart contract context, determining the capacity of a wallet owner remains a significant legal challenge.

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Glossar

Legal Capacity

Definition ⎊ Legal Capacity refers to the fundamental legal qualification of an individual or entity to enter into binding contracts, exercise rights, and incur liabilities under a given legal system.