What does the term "legal capacity" refer to?

The term "legal capacity" specifically refers to an individual's ability to enter into legally binding agreements. This capacity is essential for contracts and various legal transactions, as it determines whether a person has the mental competency and age requirements to understand the implications and responsibilities of the agreements they are entering into. For a contract to be enforceable, all parties involved must possess legal capacity; otherwise, the contract may be deemed void or voidable.

In contrast, the other options focus on different aspects of the legal system. The ability to vote pertains to civic rights rather than legal capacity in terms of contracts. The authority of courts to make legal judgments relates to judicial power, which does not define a person's capacity to enter agreements. Lastly, the power of a government to legislate involves the authority to create laws, which is distinct from an individual's capacity to engage in contracts. Therefore, the definition that best fits the concept of "legal capacity" is the ability to enter into legally binding agreements.