Is capacity described correctly if it states that each party makes a promise or begins to render performance?

Capacity in the context of contracting refers to the legal ability of parties to enter into a contract, which typically involves being of a certain age, sound mind, and not being under duress or undue influence. It is essential that all parties have the authority and competency to fulfill their promises in a contractual agreement.

The statement that capacity is described as each party making a promise or beginning to render performance is misleading. While the act of making a promise or starting performance is related to the execution of a contract, it does not inherently guarantee that the parties possess the requisite capacity to contract in the first place. Capacity must be distinctly recognized and addressed before a contract can be deemed valid and enforceable. Therefore, the correct response indicates that the original statement about capacity does not accurately encapsulate the concept.