Which term describes the legal ability to enter into a contract?

The term that describes the legal ability to enter into a contract is "Capacity." This concept refers to the minimum requirements an individual must meet to have the legal standing to form a binding contract. Generally, individuals must be of a certain age, typically at least 18, and possess a sound mind to ensure they can understand the nature and implications of the agreements they enter into.

Capacity ensures that parties involved in a contract are legally authorized to negotiate and take on the obligations set forth in the agreement. This is crucial because contracts made by individuals lacking capacity, such as minors, intoxicated persons, or those declared mentally incompetent, can be deemed void or voidable, meaning that those parties may not be bound by the contract's terms.

Other options do not accurately define this legal capability. Legitimacy pertains to lawful status, often in contexts like parentage. Consent relates to the agreement and willingness of parties to enter into a contract but does not encompass the legal qualifications necessary to do so. Authority typically refers to the power granted to individuals to act on behalf of another party, which is more relevant to agency law rather than the ability to enter into contracts in general.