Economic Capacity
/ɪˌkɒnəˈmɪk kəˈpæsɪti/
Definitions
- (n.) The legally recognized ability of a person, entity, or state to enter into binding contracts or obligations based on their financial resources or economic strength.
The corporation's economic capacity was evaluated before approving the loan.
- (n.) The functional capability of a state or organization to influence economic outcomes within its jurisdiction or sphere of control, often relevant in international law contexts.
The treaty limits the economic capacity of member states to impose tariffs.
Forms
- economic capacity
Related terms
See also
Commentary
Economic capacity often intersects with legal capacity but specifically emphasizes the financial or economic dimension when assessing an entity's ability to perform legal acts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.