Capacity

How it is used

In commercial deals the question is usually corporate capacity and authority: can the company enter into this contract, and is the person signing authorised? Contracts often include a statement that each party 'has full power and capacity' to sign.

Example sentences

1. Each party warrants that it has the capacity to enter into this agreement.

2. A contract signed by a 15-year-old may be challenged for lack of capacity.

Common collocations

• legal capacity
• lack of capacity
• power and capacity
• capacity to contract

Related terms

• partyA person or organisation that has signed a contract or is directly involved in a legal agreement or dispute.
• voidHaving no legal effect at all from the start, so that the contract or clause is treated as if it never existed.
• contractA legally binding agreement between two or more parties in which each side promises to do, or not to do, certain things.
• directorA person appointed to manage a company and make major decisions on its behalf, usually as a member of the board of directors.

This word in other fields

The same English word can have a different meaning in another field:

• capacity · Industrial Engineering & Manufacturing
• capacity · Medicine
• capacity · Healthcare Management
• capacity · Project Management

More terms: Forming & Drafting Contracts

• agreement
• offer
• acceptance
• consideration
• binding
• enforceable
• draft
• negotiate
• counteroffer
• letter of intent
• execute
• counterpart