What is required for the parties involved in a contract to be considered competent?

For parties involved in a contract to be considered competent, they must be mentally stable and sober. Competence refers to the legal ability to enter into a contract, which includes understanding the terms and implications of the agreement. Mental stability ensures that individuals can comprehend the legal obligations they are undertaking, while sobriety ensures that they are not under the influence of substances that impair judgment at the time of the contract formation.

Being at least 21 years old, while relevant in some jurisdictions for certain contracts, is not universally applicable. Age requirements can vary based on local laws, and in many places, individuals as young as 18 can legally enter into contracts. Family relationships and prior experience with contracts do not determine competence. These factors do not contribute to a person's ability to understand and agree to the terms of a contract; thus, the focus remains on mental capacity and sobriety as essential criteria for competence in contractual agreements.