Legal capacity is an individual’s ability to understand the consequences of their actions and to make decisions in accordance with the law. Capacity is an important legal concept, as it is the foundation to determining whether an individual may enter into legally binding contracts, such as a will or power of attorney, and to be held accountable for their actions. The legal capacity of individuals is determined by the courts in a variety of different proceedings, such as guardianship proceedings, adoption proceedings, and civil commitment proceedings, among others (Alvarez & Butkovich, 2018).
The concept of legal capacity has long been recognized in the common law, with its roots tracing back to ancient Roman law (Alvarez & Butkovich, 2018). Generally speaking, the capacity to enter into a contract is assumed, and thus the burden of proof lies with the party seeking to prove that the individual lacks capacity to enter into a contract (Alvarez & Butkovich, 2018). In the United States, the legal standard for determining capacity is set out in the Restatement (Second) of Contracts § 14 (1981), which states that capacity is determined by the individual’s ability to understand the nature and consequences of the transaction and to make a “reasonably intelligent decision” (Alvarez & Butkovich, 2018).
Legal capacity is also an issue in criminal proceedings, as defendants must have capacity to stand trial and to understand the proceedings. In the United States, the legal standard for determining capacity to stand trial is set out in the U.S. Supreme Court’s ruling in Dusky v. United States (1960), which states that an individual must have “sufficient present ability to consult with his lawyer with a reasonable degree of rational understanding” in order to stand trial (Alvarez & Butkovich, 2018). In addition, the U.S. Supreme Court has held that an individual must have a “rational as well as factual understanding” of the proceedings in order to be found guilty of a crime (Alvarez & Butkovich, 2018).
Legal capacity is a complex concept, and its determination is necessary in a variety of proceedings. As such, it is important for individuals to understand the legal standard for determining capacity and to be aware of the consequences of their actions if they lack capacity.
References
Alvarez, J. D., & Butkovich, J. (2018). Legal capacity: An overview. The Journal of Legal Studies, 47(1), 4-25.