Which factor could affect a person's capacity to enter into a contract?

A person's capacity to enter into a contract is influenced by their legal ability to do so, which is primarily determined by factors such as age and mental state. Legally, individuals must meet certain criteria to be considered competent to enter into agreements.

Age plays a critical role because minors (typically those under the age of 18) often have limited capacity to form contracts. In many jurisdictions, contracts made by minors are voidable, meaning they can be canceled at the discretion of the minor or their guardians. Mental state is equally important; individuals who are not of sound mind may lack the mental capacity to understand the nature and consequences of their contractual commitments, making them unable to enter into binding agreements.

While other factors such as personal financial history, market conditions, and sales trends are relevant to the decision-making process in real estate transactions, they do not directly affect an individual's legal capacity to enter into a contract.