Legal Capacity Measure

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A Legal Capacity Measure is an agent capacity measure of the extent to which an agent has legal personhood and legal personality, which grants them the recognized ability to take legally significant actions (such as making binding agreements and voting).



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    • QUOTE: Capacity refers to the ability to make a rational decision based upon all relevant facts and considerations. Some common usages of the term “capacity” in a legal sense include:
      • In the context of criminal law, the term “capacity” means that the defendant must have the ability to understand the wrongfulness of their actions.
      • In the context of contract law, the term “capacity” denotes a person's ability to satisfy the elements required for someone to enter binding contracts. For example, capacity rules often require a person to have reached a minimum age and to be of sound mind. A contract signed by a person lacking capacity may be void or voidable.
      • In the context of wills, the maker of a will must have testamentary capacity. Cases such as this one from the D.C. Court of Appeals, explain that “’testamentary capacity’ is the mental state that a person must possess at the time of making a will in order for the will to be valid.”
    • [Last updated in March of 2022 by the Wex Definitions Team]

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