Weegy: contractual capacity: the ability of an individual to enter into a legally binding contract. [ A party's contractual capacity may be affected by age, mental capacity, mental illness, intoxication and other factors defined by law. contractual capacity, as it might be used: The court held that, even if plaintiff lacked contractual capacity due to alcohol ingestion at the time she executed the agreement, she ratified the agreement during a time when she had regained contractual capacity. ] (More)