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 Chance Bargain Installment Sale Insurable Interest Groves v. John Wunder Co. Central Adjustment Bureau, Inc. v. Ingram Agreement to Sell Novation Davis v. Jacoby Curtice Brothers Co. v. Catts Quantum Meruit
