What is required for a legal contract regarding the competency of the parties involved?

A legal contract requires that all parties involved possess legal and mental competency. This means that each party must have the capacity to understand the terms of the contract and make informed decisions. Legal competency generally refers to being of a certain age (usually 18 years or older) and not being under the influence of substances that impair judgment. Mental competency implies that the parties are not suffering from mental incapacities that would hinder their ability to comprehend the contract's implications.

Without these competencies, a contract could be deemed void or voidable, meaning it may not hold up in a court of law. For example, if one party is found to be mentally incompetent at the time of the agreement, they may have grounds to dispute the contract later. This requirement ensures fairness and clarity in contractual agreements, protecting the interests of all parties involved.