Under which condition can an individual choose not to perform a contract due to incapacity?

Choosing not to perform a contract due to incapacity is specifically grounded in the legal concept of competency. An individual can only claim incapacity as a defense against performance if they have been legally declared incompetent. This declaration typically results from a court finding that the individual lacks the mental ability to understand the nature and consequences of their contractual obligations at the time of agreement.

This means that a legally incompetent person is protected from being held accountable under the contract because they are unable to comprehend and thus, consent to the terms of the agreement. Other scenarios, such as being over a certain age, experiencing financial strain, or being unhappy with contract terms, do not constitute legal incapacity for contract performance. Age alone does not affect one's legal capacity to contract, while financial difficulties or dissatisfaction with terms do not negate the obligation to perform unless under legal incompetence.