What is required for a person to be able to enter into a contract?

For a person to enter into a contract, having legal capacity is essential. Legal capacity generally means that the individual must have the ability to understand the nature and consequences of the agreement they are entering into. This typically includes factors such as being of a certain age (usually of majority, which is 18 in many jurisdictions), having mental competence, and not being under duress or undue influence.

If a person lacks legal capacity, any contract they enter may be void or voidable, meaning it could be rendered unenforceable by a court. This concept is fundamental in contract law, as it ensures that all parties involved can fully appreciate and agree to the obligations they are taking on.

While verbal agreements can sometimes be valid contracts, they do not inherently ensure that the parties involved understand what they are agreeing to. Similarly, written consent is not strictly required for all contracts (as many can be valid if made verbally), and financial ability, although often relevant in practical terms, does not factor into the legal enforceability of a contract regarding the parties’ capacity to enter into it. Thus, legal capacity is a core requirement that supports the foundation of contractual agreements.