ABA Family Legal Guide

Contracts and Consumer Law

Introduction to Contracts

A Contract Defined

When does mental capacity invalidate a contract?

While the age for legal maturity is easy to determine, the standards for determining mental capacity are remarkably complex and differ widely from one state to another. One common test is whether people have the capacity to understand what they were doing and to appreciate its effects when they made the deal. Another approach is evaluating whether people can control themselves regardless of their understanding.