Capacity (law)

In the laws of different countries capacity refers to the ability to effectively bind themselves by legal declarations. The regulations are designed to protect those whose mental development does not have the necessary level of understanding to participate in legal transactions. The full capacity is linked to the age of majority and may be withdrawn by so-called incapacitation.

In countries of the Roman legal system Minors are basically tied to a contract concluded by them, however, have the option to rescind the contract by bringing an action. The German legal system distinguishes between incompetent and limited competence whose contracts are up to the consent of their legal representative provisionally invalid. The prevalent in many English common law countries, finally, a comprehensive legal representation and thus also general business ability is unknown, instead, is geared to the casuistic of protection of the minors in the individual case. This is the doctrine of necessaries, according to which a young person has to pay only a reasonable price instead of the contractually agreed in contracts about things that are appropriate and relevant to its way of life of particular importance.

Legal situation in individual countries

• Germany: capacity ( Germany )
• France: → Section capacity in the article Law of Obligations (France)
• Austria: Business skills ( Austria )
• Switzerland: action ( Switzerland )