The ability to understand the nature and effects of one’s actions. When a party to a contract is deemed to lack the capacity to enter into a binding contract, that contract is void or voidable. Related entries Novation Davis v. Jacoby Curtice Brothers Co. v. Catts Quantum Meruit American Trading & Production Corp. v. Shell International Marine Ltd. Tompkins v. Dudley Taylor v. Caldwell Monroe Piping & Sheet Metal, Inc. v. Edward Joy Co. Mishara Construction Co. v. Transit-Mixed Concrete Corp. Carlill v. Carbolic Smoke Ball Co.
