Capax negotii – This legal term comes from Latin. In the Law practice it is used in the area of Law of Contracts and in Business Law. There it details the legal capacity of a person to conclude contracts and undertake contractual obligations towards others. In other words, the concluding of contract may become valid and binding Law for them without exceptions or excuses. Different legal systems set up different rules establishing the capacity for concluding contract and holding civil liability. For example, underage persons and these who suffer mind incapability are not able to conclude contracts and to bear civil/tort liability towards others. In practice, you can’t sign a property sale contract if you are on the age of 10.
The origin of the term is the word “capax”, which literally means large enough, capacious, competent.