Which special rule restricts the capacity to contract?

The correct choice relates to the legal doctrine surrounding capacity to contract. It is established in contract law that certain individuals do not have the legal capacity to enter into binding contracts. This typically includes minors, individuals who are mentally incapacitated, and those who are intoxicated at the time of contracting. When these individuals attempt to enter into contracts, the law provides them with a measure of protection, allowing them to void such contracts if they choose to do so.

This special rule is vital as it safeguards certain vulnerable groups from being taken advantage of in contractual agreements. The law assumes that minors lack the experience and maturity necessary to understand the ramifications of contractual obligations. Similarly, individuals who are mentally incapacitated or intoxicated may not fully comprehend their actions, making it unjust to hold them bound by contracts they enter into under these conditions.

In contrast, the other options deal with requirements for different types of contracts or do not accurately capture the essence of capacity restrictions. The idea that all contracts must be written is false, as many verbal agreements are enforceable. The notion that only companies can contract is inaccurate as individuals can also enter into contracts. Lastly, insisting that contracts must be explicitly verbal overlooks the legitimacy of written agreements, which are often preferred for clarity and enforceability.