Passive Legal Meaning and Definition

Here is a simplified definition of the legal term Passive.

Passive (adjective)

  1. Refers to a state or condition of being uninvolved or not actively participating, often in a legal context. For instance, a 'passive trustee' is one who is not engaged in the daily operations or decision-making processes.
  2. In the context of businesses, a 'passive' or 'dormant' partner is an investor in a partnership, who contributes capital but does not participate in the firm's management.
  3. Also implies a state of non-resistance or non-objection to activities or events, often insinuating tacit approval or indifference.