Define: Competent Party

A competent party, in a legal context, refers to an individual who has the legal capacity to enter into a contract, make decisions, and undertake legal responsibilities. Competency typically requires that the individual be of legal age (often referred to as being of “sound mind and body”) and mentally capable of understanding the nature and consequences of their actions. Minors, individuals with certain mental impairments, and those under the influence of drugs or alcohol may lack competency to enter into certain contracts or make legally binding decisions. The concept of competency ensures that parties entering into agreements do so freely and with a full understanding of their rights and obligations. If a party is deemed incompetent, any contracts or agreements they enter into may be voidable or unenforceable.

Persons legally capable of entering a contract. Persons who are under age, mentally insane, or under the influence are not competent parties.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.