4. Intention and Capacity
Legal intention in domestic and commercial settings and capacity of minors, companies and impaired parties.
How to study the CPQ Foundation stage
Prepare each separately assessed component on its own terms, then connect law, regulation, client service and research across the full stage.
Core concepts
Concept 1
Objective context determines whether parties intended legal consequences.
Exam cue: Use objective words and conduct rather than undisclosed intention.
Concept 2
Domestic and commercial arrangements carry different rebuttable starting points.
Exam cue: Test any presumption against the actual evidence.
Concept 3
Age, mental capacity, intoxication and corporate authority can affect enforceability.
Exam cue: Identify the party and precise capacity rule.
Risk pitfalls and guardrails
Treating domestic agreements as never binding.
Guardrail: Do not mix module boundaries, confuse marks with item counts, exceed professional authority or rely on an outdated or unverified legal source.
Assuming every commercial statement creates legal obligations.
Guardrail: Do not mix module boundaries, confuse marks with item counts, exceed professional authority or rely on an outdated or unverified legal source.
Ignoring authority when a company acts through an agent.
Guardrail: Do not mix module boundaries, confuse marks with item counts, exceed professional authority or rely on an outdated or unverified legal source.
Memory anchors
Objective intention
Would a reasonable observer find an intention to create legal relations?
Presumptions
Domestic usually no; commercial usually yes—both can be rebutted.
Capacity check
Person, age or condition, transaction type and knowledge of the other party.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A married couple makes an informal household arrangement with no commercial features. What is ordinarily presumed?
Two companies sign a detailed supply agreement. What is ordinarily presumed?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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