Question 1

Can a minor sign a contract?

Accepted Answer

They can sign one, but it's generally voidable at the minor's option. The minor can choose to honor or cancel the contract. The adult party is still bound. There are exceptions: contracts for necessities (food, housing, medical care) are enforceable against minors in most states.

Question 2

What happens if someone signs a contract while drunk?

Accepted Answer

If they were so intoxicated they didn't understand what they were signing, the contract may be voidable. They'd need to prove they lacked capacity at the time and that the other party knew or should've known. Mild intoxication usually isn't enough — courts set a high bar.

Question 3

Can a mentally ill person enter a contract?

Accepted Answer

It depends on the severity. If a court has declared someone legally incompetent and appointed a guardian, any contract they sign is void — not just voidable. If there's no guardianship but the person couldn't understand the contract's nature, it may be voidable.

Question 4

How do I verify someone's authority to sign for a company?

Accepted Answer

Ask for a corporate resolution or board authorization granting the signatory authority to bind the company. For LLCs, check the operating agreement. You can also verify their role through the state's business registry. If you're unsure, request a certificate of authority or power of attorney.

Question 5

What happens if I sign a contract with someone who lacks capacity?

Accepted Answer

The person without capacity can void the contract — but you can't. If the contract is voided, both sides should be restored to their pre-contract positions. Any money or goods exchanged must be returned. You may lose any work you've already performed.

Legal Capacity

Definition

In Practice

Common in these contract types

Related terms

Frequently asked questions about legal capacity

Create a contract with proper legal capacity clauses