In what situation would "capacity to contract" not be met?

Capacity to contract refers to the legal ability of parties to enter into a binding agreement. It ensures that the individuals involved fully understand the terms and consequences of their actions.

In instances where one party is intoxicated at the time of signing, the law generally presumes that such a person may not fully comprehend the nature or significance of the contract they are entering into. Intoxication can impair judgment and the ability to make informed decisions. Therefore, if a party is sufficiently intoxicated when entering into the agreement, they may lack the capacity to contract, potentially rendering the contract voidable at their discretion.

This focus on mental competence is a crucial aspect of contract law that protects individuals from being held to agreements they could not understand at the time of signing. In contrast, situations involving mutual agreement, written contracts, or both parties being of legal age do not inherently affect the capacity to contract. Each of those conditions can exist independently of a party's ability to understand and participate in a contractual agreement fully.