Legal Definitions - transact

To transact means to carry out, conduct, or manage business, negotiations, or other formal dealings, often with the aim of reaching a conclusion or agreement. It can also specifically refer to settling a dispute through mutual compromise.

• Example 1: Business Dealings

  A software company and a major corporation need to transact the terms of a new licensing agreement. This involves their legal teams drafting contracts, negotiating pricing, discussing intellectual property rights, and ultimately signing the final document to formalize their partnership.

  Explanation: In this scenario, "transact" refers to the entire process of conducting and completing a complex business deal, from initial discussions and negotiations to the final execution of the agreement.

• Example 2: Dispute Resolution

  Following a minor car accident, the two drivers involved decided to transact a settlement directly with each other, rather than involving their insurance companies or going to court. They agreed on a fair amount for the damages and exchanged signed statements confirming the resolution.

  Explanation: Here, "transact" illustrates the act of settling a disagreement or dispute through direct negotiation and mutual concession, leading to an agreed-upon resolution between the parties.

• Example 3: Formal Proceedings

  The university's admissions committee meets annually to transact the selection of new students. This involves reviewing thousands of applications, debating candidate qualifications, and making final decisions on who will be offered admission for the upcoming academic year.

  Explanation: This example demonstrates "transact" in the context of conducting formal proceedings or carrying out official duties, where a body performs a series of actions to reach a significant decision or conclusion.