Prime objective of this lecture is to describe on Capacity Legal Ability. Capacity is the legal ability to enter into a contract. Two primary categories of individuals lack contractual capacity: minors and those suffering from sufficiently severe mental incompetence. Lack of capacity may be used as an affirmative defense in a breach of contract lawsuit or as a basis for seeking contract rescission. If there is no capacity, the contract is void. If there is partial capacity, the contract is voidable.