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 Mills v. Wyman Liquidated Damages Specific Performance D&G Stout, Inc. v. Bacardi Imports, Inc. Raffles v. Wichelhaus Bilateral Mistake Mutual Mistake Unilateral Mistake of Fact Luttinger v. Rosen Wood v. Lucy, Lady Duff-Gordon
