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Financial Dictionary

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CAPACITY - This word, in the law sense, denotes some ability, power, qualification or competency of persons, natural or artificial, for the performance of civil acts, depending on their state or condition, as defined or fixed by law; as the capacity to devise, to bequeath, to grant or convey lands; or to take and hold lands, to make a contract and the like.

The Constitution requires that the president, senators and representatives should have attained certain ages; and in the case of the senators and representatives, that out these they have no capacity to serve in these offices.

All laws which regulate the capacity of persons to contract are considered personal laws; such are the laws which relate to minority and majority; to the powers of guardians or parents, or the disabilities of coverture. The law of the domicil generally governs in cases of this kind.

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