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Capacity occurs in the form of abilities whereas authority occurs in the form of power.
Capacity refers to the ability of a person to use the given information for making a decision. A person that lacks capacity it means that its mind is impaired and he is unable to make a decision at that time while on the other hand, authority is the legitimate power that a person or a group of persons possess and use it over other people. In capacity, the person has something in the form of abilities whereas in authority, the person has something in the form of power which they used to implement its decision over other people.
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