What does "capacity of natural persons" mean in contracts?

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The phrase "capacity of natural persons" in the context of contracts refers to an individual's ability to enter into a legally binding agreement. This capacity is primarily governed by two conditions: the individual must be of legal age and must be mentally competent to understand the nature and consequences of the contract they are entering into.

Being of legal age typically means reaching the age of majority, which in many jurisdictions is 18 years old, though this can vary depending on local laws. Mental competency involves being able to understand the nature of the transaction and the rights and obligations that arise from a contract, which means that individuals with certain mental disabilities or those who are intoxicated may lack the capacity to contract.

The other options presented do not accurately reflect the legal requirements surrounding the capacity of natural persons in contract law. For instance, marriage is not a prerequisite for individuals to have capacity to contract, nor does being a natural person grant unlimited capacity; there are clear legal boundaries regarding age and mental competence. Additionally, having a personal lawyer is not a legal requirement for entering into contracts, and individuals can contract on their own without legal representation. Therefore, the accurate interpretation of "capacity of natural persons" firmly supports the idea that individuals must be both of legal age and mentally competent.

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