What is legal (mental) capacity? From a legal perspective, legal capacity is the ability (or lack of ability) for a person to understand the nature of an agreement / contract / their actions, along with the corresponding consequences. A person who lacks capacity cannot enter a contract because they are not able to understand what they are entering into. They also cannot be held accountable for their actions in the same way of someone who understands teh consequences of their actions.This is very different than not understanding the terms of a contract. Watch this video to learn more about Alberta law on capacity. This is a very brief overview and it is important for people to seek legal advice before they try to avoid the consequences of their actions based on a lack of capacity.
Jeffrey Kahane of Kahane Law Office.