A more thorough explanation:

Capax negotii is a Latin term that means "capable of entering into a transaction." It is used to describe a person who has the legal capacity to enter into a contract or transact business.

• A person who is of legal age and sound mind is capax negotii and can enter into a contract.
• A corporation is also capax negotii and can transact business on its own behalf.

For example, if a person wants to buy a car, they need to enter into a contract with the seller. The buyer must be capax negotii to enter into a legally binding agreement. Similarly, a corporation can enter into a contract with another company or hire employees because it is also capax negotii.