Which contract demonstrates legal capacity among parties?

Legal capacity refers to the ability of parties to enter into a contract, and this is typically determined by their age, mental competence, and in the case of businesses, their authority to act. In this context, a building contract under a corporate name signifies that the corporate entity, having been legally recognized, possesses the capacity to engage in contractual agreements. Corporations have distinct legal identities that allow them to conduct business, enter contracts, sue, and be sued. Therefore, when a contract is executed under a corporate name, it confirms that the corporation, and by extension the individuals acting on its behalf, have the legal authority and capacity to create binding obligations.

In contrast, an insurance contract issued in a business name does not inherently demonstrate that proper legal capacity has been established; it needs conditions like appropriate corporate governance or authority. A lease agreement with a corporate tenant may involve similar considerations of legal capacity, but it depends on the specific terms and conditions under which the lease was sanctioned. An invoice shipped in a personal name is less connected to the legal capacity of parties in commercial agreements and reflects a personal transaction rather than one involving established business legalities. Hence, the building contract under a corporate name unmistakably illustrates legal capacity among parties involved.