A legally competent party to a contract will:

For a contract to be legally valid and enforceable, all parties must have the legal capacity to enter into the agreement. This concept, known as "contractual capacity," is generally defined by three key elements. The party must have reached the age of majority (18 in Virginia), must be mentally competent (not adjudicated as incompetent), and must not be so intoxicated by drugs or alcohol as to be incapable of understanding the nature and consequences of the transaction. Option A is the only choice that correctly and completely encompasses all these essential requirements for a legally competent party.

B. Literacy is not a legal requirement for contractual capacity; a contract can be valid even if a party cannot read or write.

C. While advisable in many situations, having legal representation is not a prerequisite for a party to be considered legally competent.

D. This option incorrectly includes literacy as a requirement and, more importantly, omits the fundamental requirement of having reached the age of majority.

1. Code of Virginia § 1-203. Age of majority. This statute establishes the age of majority in Virginia. It states, "A person who is eighteen years of age or older is of full age and is an adult." This directly supports the "age of majority" component of the correct answer.

2. Restatement (Second) of Contracts §§ 12, 15, 16. This highly influential legal treatise, used in university law courses nationwide, outlines the core principles of contractual capacity.

§ 12 (Capacity to Contract): Establishes the general rule that capacity is required and that certain individuals (infants, mentally ill, intoxicated) may have limited or no capacity.

§ 15 (Mental Illness or Defect): Explains that a contract is voidable if a party, due to mental illness or defect, is unable to understand the nature and consequences of the transaction.

§ 16 (Intoxicated Persons): States a contract is voidable if the other party has reason to know that, due to intoxication, the person is unable to understand the nature and consequences of the transaction.