Legitimate Business Purpose
/lɪˈdʒɪtɪmət ˈbɪznɪs ˈpɜːrpəs/
Definitions
- (n.) A valid, lawful reason for engaging in a business transaction or activity, often required to justify corporate or contractual actions.
The contract was deemed valid because it served a legitimate business purpose.
Forms
- legitimate business purpose
Related terms
See also
Commentary
In legal drafting, specifying a legitimate business purpose helps to distinguish lawful commercial motives from improper or fraudulent objectives.
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.