Mental Capacity

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Term Definition
Mental Capacity

Central to understanding mental capacity in Australian Power of Attorney documents is the presumption every adult possesses the inherent capacity to engage in legal transactions. This presumption recognises our intrinsic ability to make decisions, unless evidence suggests otherwise. However, this presumption is not rigid and it adapts to the specific circumstances of each case and pivot on an individual’s ability to grasp the nature and implications of the transaction they are entering into.

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