legal capability of those involved in mutual assent of making a contract, including an insurance contract. Those who have been deemed to be incompetent to make a valid contract include intoxicated and insane persons, and enemy aliens. Minors can enter into a contract, but it is voidable at the option of the minor. For example, if an agent sells an insurance policy to a minor, and the insurance company agrees to underwrite it, the policy can be voided at any time the minor wishes both before and after the minor reaches the age of majority. The insurance company cannot void the contract.

one of the requirements for a valid contract. Parties with less than full capacity include minors , the mentally insane, and those who are intoxicated.

Example: Collins, at age 17, entered into a contract to buy a tract of land. Collins can void that contract because it was entered into without full legal capacity.