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competence

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Competence describes your skill or ability in a specific field or subject, or being able to do something well or to being sane enough to stand trial in court. (noun)

An example of competence is when a pianist has the ability to play the piano well.
An example of competence is when people are tested to determine whether they have sufficient skills to perform a specific job.
An example of competence is when a defendant is examined by a psychiatrist to determine if he understands how to assist in his own defense.

See competence in Webster's New World College Dictionary

See competence in American Heritage Dictionary 4