What is required for a person to have the capacity to contract?

For a person to have the capacity to contract, they must meet specific legal criteria that ensure they can understand and agree to the terms of the contract. Being of legal age and mentally competent guarantees that the individual can comprehend the nature of the agreement and its implications. Legal age refers to the age set by law at which a person can enter into a binding contract, typically 18 in Ontario. Mental competence involves the individual's ability to understand the consequences of their actions when entering into a contract.

The other options incorrectly represent the requirements for contractual capacity. Having a degree in law or extensive financial knowledge is not necessary for a person to enter into a contract; what matters is their ability to understand the agreement. Furthermore, while a Natural Person is indeed someone who can enter contracts, it’s the legal age and mental competency that are critical factors, making them the requirements for having the capacity to contract.