Write short notes on (c) Fresh-contract requirement

Capacity is the parties' legal competence to bind themselves — the power to enter a valid contract: the ability to understand the transaction's nature and consequences, and to assume the obligations it creates. The presumption and its limits: every natural person is presumptively capable of contracting under the Muluki Civil Code, 2074's design — capacity the rule, incapacity the defined exception. The policy: the law protects those who cannot protect themselves (minors, the unsound of mind) — the protection's asymmetry deliberate: the shielded party may avoid; the other party bears the risk of dealing with the incompetent.