What does 'capacity' mean in a legal context?

In a legal context, 'capacity' refers to the legal competence of a person to perform certain actions or enter into contracts. This means that an individual must have the mental ability and maturity to understand the nature and consequences of their actions, allowing them to engage in legal agreements or make legal decisions.

For instance, a person must have the capacity to enter into a contract; if someone lacks capacity—due to age, mental incapacity, or other reasons—the contract may be void or voidable. This definition also encompasses the concepts of legal age (such as being of age to consent) and mental competency (such as not being declared legally incapacitated).

The other options, while related to aspects of law, do not accurately capture the essence of 'capacity.' Understanding the law is part of the broader concept of legal competence but does not address the person's overall ability to participate legally. The power to enforce legal rights relates to the rights established by law rather than an individual's competence. Similarly, the obligation to follow regulations pertains to compliance with legal standards but does not define legal capacity in terms of individual competencies or rights.