Agreement Definition Under Law

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Sometimes the ability of natural or artificial persons either to impose contracts or to enforce contracts against them is limited. For example, very young children cannot be held to the good business they have done, assuming that they do not have the maturity to understand what they are doing; Misguided employees or directors may be prevented from entering into contracts for their company because they have acted in an ultra vires manner (beyond their power). Another example could be people with mental disabilities, either by disability or by drunkenness. [39] Each Contracting Party must be a “competent person” with legal capacity. . . .

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