Contractual capacity can exist even though a party does not understand every provision of the contract.

Question

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Contractual capacity refers to the legal ability of a person to enter into a contract. It does not require that the party fully understand every provision of the contract, just that they have the mental capacity to understand the nature and consequences of entering into the agreement. Therefore, contractual capacity can exist even though a party may not comprehend certain aspects of the contract.

Contractual Capacity Can Exist Even Though a Party Does Not