What can a lack of capacity lead to regarding contracts?

A lack of capacity can lead to a contract being voidable because a party who lacks the legal capacity to contract is typically not bound by their agreements. This situation often arises in cases involving minors, individuals suffering from mental incapacity, or intoxicated persons. When a contract is voidable, the party lacking capacity has the right to affirm or reject the contract. If they choose to void the contract, it essentially becomes unenforceable, highlighting the party's protection under the law.

In contrast, the other options represent scenarios that do not apply when one party lacks capacity. If a contract is enforceable, it means that both parties are legally bound by its terms, which would not be the case if one party lacked the capacity to understand or agree to the terms. A guaranteed contract implies a certain assurance or promise regarding its outcome, which cannot be assured if one party lacks capacity. Lastly, a mandatory contract suggests an obligation to fulfill the terms, which is inconsistent with the protections afforded to individuals lacking mental or legal capacity.