law assumes that almost anyone can enter into a contract
few exceptions:
must be able to understand that they are negotiating for a relationship
must be able to understand that each party will have rights and obligations because of the parties’ agreement
court will not find a contract enforceable if a person was not able to understand the consequences of entering into the contract at the time that it was formed
A person who is unable to understand the consequences of entering into a contract lacks contractual capacity