Legal Definitions - favor negotii

Definition: Favor negotii is a Latin term that means "the favor of the business."

It refers to the legal principle that a court should not interfere with the internal affairs of a business unless there is a compelling reason to do so.

For example, if a shareholder of a company is unhappy with the decisions made by the board of directors, they cannot simply ask a court to intervene. The court will only get involved if there is evidence of fraud, mismanagement, or other serious issues that threaten the company's well-being.

Another example is when a court is asked to enforce a non-compete agreement between an employer and an employee. The court will only do so if the agreement is reasonable and necessary to protect the employer's legitimate business interests.

These examples illustrate how favor negotii protects the autonomy of businesses and allows them to operate without undue interference from the courts.