There are some items that come under the concept of capacity such as mental disorder, intoxication, minors and so on. Mental disorder: states that the mind of the person involved in the contract should be stable at the time of entering into the contract. The person must have sufficient understanding to be able to make decisions otherwise the contract will be void. Intoxication: This means that the contracting parties should not be under the influence of any alcoholic products such as drugs or drinks at the time of concluding the contract. The case of Blomley v Ryan may be a good example of intoxication. In this case Blomley was to purchase a farm from Ryan and at the time of the contract Ryan was under the influence of alcohol so the contact was not enforceable. Minors: Australian law limits the entry of minors into the formation of the contract. Therefore any contract entered into with a person under the age of 18 will be considered voidable. (Clarke, 2016)In the case of Hevvy and Traynor, nothing is mentioned about the state of mind of either party. From the scenario it is therefore assumed that both parties have the legal capacity to establish a