competent
Definition
Competent means that a person has the legal ability and mental capacity to make decisions, sign contracts, or testify in court. When the law calls someone competent, it means they are of sound mind, are old enough to enter into legal agreements, and understand what they are doing.
Example
If you sign a contract with someone who later claims they were mentally incapacitated at the time, a court might rule that they were not competent to sign, which could make the whole contract invalid.
Watch Out
Always make sure the person you are doing business with is legally old enough and mentally capable of entering a contract, because signing with someone who is not competent can leave you with no legal protection.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.