A contract that is not legally binding due to lack of capacity is considered?

A contract that is not legally binding due to a lack of capacity is considered void. This means that the contract has no legal effect from the moment it was created, as the parties involved did not possess the legal ability to form a valid contract. Capacity refers to the legal ability of individuals to enter into a contract, and typically, this includes factors such as age, mental competence, and intoxication.

For instance, if a minor enters into a contract, that contract is void because minors typically lack the legal capacity to consent to contracts. Similarly, if someone is deemed mentally incompetent or is under duress when signing a contract, that contract may also be void.

In contrast, unenforceable contracts are those that, while they may have been valid at some point, cannot be enforced due to certain legal defenses, such as failure to meet statutory requirements. Voidable contracts, on the other hand, are valid and enforceable until one party chooses to void them. Illegal contracts are those that involve illegal activities and, therefore, are void as well. However, in the case of lack of capacity, the contract is void from the outset, as if it never existed.