Final answer:
It is true that a contract is either voidable or void if any party lacks contractual capacity. Contractual rights, derived from property rights, provide the basis for individuals and firms to make binding agreements, upheld by a legal system to ensure reliability in economic transactions.
Step-by-step explanation:
It is true that if any party to a contract does not have contractual capacity, the contract is either voidable or void. Contractual capacity refers to the legal ability of a party to enter into a binding agreement. If a party lacks contractual capacity, due to reasons such as age (being a minor), mental incompetence, or intoxication, the contract may not be legally enforceable, or it may only be enforceable at the option of the party who lacks the capacity.
Contractual rights are deeply rooted in property rights, which allow individuals and firms to enter into agreements with each other, utilizing their property rights. Contracts form a critical part of economic activity, and a legal system that upholds and enforces contract law ensures that agreements can be relied upon, which is vital for economic growth and the smooth operation of business transactions.