Legal capacity refers to the ability of an individual to understand and engage in legal actions, such as entering contracts or making decisions about their personal affairs. This capacity is essential for ensuring that individuals can protect their rights and interests in legal matters. Generally, adults are presumed to have legal capacity, while minors or individuals with certain mental impairments may have limited capacity. When someone lacks legal capacity, they may require a guardian or power of attorney to make decisions on their behalf. This ensures that their needs and preferences are respected while also safeguarding their rights in legal situations.