Legal Definitions - purpose

In legal terms, purpose refers to the intended aim, objective, or reason behind an action, a document, or the existence of an entity. More specifically, when discussing a corporation, it denotes the particular business activities that the company is legally authorized to conduct, as outlined in its founding documents.

• Example 1 (Purpose of a Legal Document):

  Consider a standard residential lease agreement between a landlord and a tenant. The purpose of this lease agreement is to establish the terms and conditions under which the tenant can occupy the property, including rent payments, maintenance responsibilities, and the duration of the tenancy. It legally defines the rights and obligations of both parties, ensuring clarity and enforceability regarding the property's use.

• Example 2 (Purpose of a Corporation):

  Imagine a technology startup whose articles of incorporation state its purpose as "to develop, market, and license innovative software solutions for data analytics." This statement legally defines the scope of business activities the company is authorized to pursue. If the company later decided to open a chain of restaurants, it would likely be operating outside its stated corporate purpose, which could have legal implications.

• Example 3 (Purpose of a Law or Regulation):

  Think about a state law mandating the use of child safety seats in vehicles. The purpose of this law is to protect the lives and ensure the safety of young children by requiring appropriate restraints during travel. This objective guides the specific requirements of the law, such as age, weight, and height guidelines for different types of car seats, all aimed at reducing injuries and fatalities.