Capacity to contract

Capacity to contract concerns whether a person can validly assume contractual rights and obligations. In Switzerland, the analysis links to legal personality, majority, capacity of judgment and any restrictions under adult or child protection law. Minors and persons lacking capacity of judgment may need consent or representation, and some transactions are invalid or only effective within limited exceptions, such as benefits without obligations or everyday matters. Legal entities act through authorised organs or representatives. Capacity is distinct from authority: a person may have personal capacity but lack power to bind another. In international matters, applicable private international law may determine which law governs capacity, while mandatory protective rules can still influence the result.