Legal Definitions - passive

In legal contexts, the term "passive" generally describes a situation characterized by a lack of action, direct involvement, or active participation. It often refers to an omission or a failure to act, disclose, or manage, particularly when some form of action or disclosure might be expected or legally required. This contrasts with "active" conduct, which involves deliberate steps or direct engagement.

• Passive Negligence

  This occurs when an individual or entity fails to perform a duty or take an action that should have been done, leading to harm or damage. The negligence stems from inaction rather than a direct, harmful act.

  Example: A property management company is responsible for maintaining a large apartment complex. They receive multiple complaints over several months about a broken handrail on a common staircase but fail to repair it. One day, a tenant uses the staircase, loses their balance due to the faulty handrail, and falls, sustaining an injury.

  Explanation: The property management company's failure to repair the handrail, despite being aware of the defect and having a duty to maintain safe common areas, constitutes passive negligence. Their inaction allowed a dangerous condition to persist, leading to the tenant's injury.

• Passive Income

  This refers to income generated from an enterprise or investment in which the recipient is not actively involved in the day-to-day operations or management. The income is typically derived from capital, property, or the efforts of others, requiring minimal personal effort from the recipient.

  Example: An individual purchases a rental property and hires a professional property management company to handle all aspects of renting, including finding tenants, collecting rent, and performing maintenance. The individual receives monthly rental income without directly managing the property or interacting with tenants.

  Explanation: The rental income received by the property owner is considered passive because they are not actively involved in the management or operation of the property. The income is generated through their investment and the services of the property management company, requiring little to no active effort from the owner.

• Passive Concealment

  This occurs when a party, typically a seller, knows about a significant defect or material fact but fails to disclose it to another party, such as a buyer, without actively taking steps to hide the defect. The concealment arises from silence or inaction rather than overt deception.

  Example: A homeowner is selling their house and is aware that the roof has a persistent leak that only manifests during heavy storms, leaving no visible signs during dry weather. During negotiations, a potential buyer asks if there are any known issues with the roof. The homeowner responds, "Not that I'm aware of," without elaborating on the intermittent leak, and does not actively cover up any water stains that might appear after a storm.

  Explanation: The homeowner's failure to disclose the known, intermittent roof leak, even when directly questioned about the roof's condition, is an example of passive concealment. They did not actively mislead the buyer or physically hide evidence, but their omission of a material fact allowed the buyer to remain unaware of a significant defect.