- capacity to contract
- someone's right or ability to be part of a legal contract, because there is nothing such as bankruptcy which legally prevents them
* * *capacity to contract UK US noun [S]► LAW if you have the capacity to contract, you have the ability or right to sign a legal agreement to show that you accept it: »
As far as age is concerned, a person who has reached 18 has the legal capacity to contract as an individual.
Financial and business terms. 2012.