THE CANCELLATION OF CONTRACTS ENTERED INTO BY AN INCAPABLE PERSON: LEGAL AND SOCIAL EFFECTS

Abstract

A contract is a fundamental instrument for life in society, serving as the basis for business relationships between individuals. However, its validity depends on compliance with certain legal requirements, including the capacity of the contracting parties. The Brazilian legal system, particularly the Civil Code, establishes rules to protect individuals deemed incapable, whether totally or partially, ensuring that they are not harmed in negotiations. Given this fact, this study aimed to analyze the legal and social effects of the annulment of contracts entered into by incapable individuals, in light of Brazilian legislation and current case law. It was based on a literature review of scientific articles, books, periodicals, and current legislation on the respective topic. Data collection was conducted from 2020 to 2025 using databases such as Scielo, Google Scholar, and others. The results clearly show that the annulment of contracts due to incapacity aims to protect the vulnerable, but can create legal uncertainty for the other contracting party. The Brazilian legal system adopts measures that seek to balance the protection of the incapacitated with the stability of business relationships. As alluded to in this research, case law tends to recognize annulment when there is a clear defect in consent, even if there are unfavorable social repercussions for third parties.