Which of the following statements about legal capacity is correct?

The correct statement is that legal capacity may be restricted due to age or mental ability. Legal capacity refers to the ability of an individual to enter into a legally binding contract.

Individuals who are categorized as minors (usually under the age of 18) do not have full legal capacity to enter contracts; they can only enter into certain types of contracts or may need parental consent for others. Similarly, individuals who are mentally incapacitated may lack the capacity to understand the nature of the contract or its implications, which can lead to restrictions on their ability to contract.

This correct option highlights that legal capacity is not uniform across all individuals and can indeed be influenced by specific factors such as age and mental competence. The other options incorrectly assert that minors have full capacity, that mentally incapacitated individuals can always enter valid contracts, or that all individuals possess full legal capacity at all times, which overlooks these important legal distinctions.