What term is used to refer to individuals who have the capacity to enter into a contract?

The term that accurately refers to individuals who have the capacity to enter into a contract is "competent parties." This designation implies that the individuals involved possess the legal ability to engage in binding agreements. Generally, competent parties are adults of sound mind who understand the nature and implications of the contract they are entering into.

Competence is a fundamental requirement in contract law, as it ensures that all parties can fully comprehend their rights and obligations under the contract. This protects the integrity of the contract and ensures that it can be enforced by law.

Other groups mentioned—such as minors and third parties—do not have the same legal standing regarding contractual obligations. Minors, for example, are often treated as having limited capacity to contract since they may not fully understand the ramifications of their agreements, leading to their ability to void contracts under certain circumstances. Third parties typically refer to individuals not directly involved in the contract but may have an interest or involvement in its outcome, rather than being the main parties who have the capacity to contract. Lastly, offerors are individuals who present an offer, which is just one aspect of the contractual process and does not address their capacity in the same way.