Define: Principal Business

How is Principal Business defined in a legal contract?

• Principal Business means the main activity determined by examining the resources devoted to each business process, including labor, time, and physical space like office, warehouse, etc, as well as the sources of net and gross income. The name, appearance, and promotion of the [organization] can be considered but given less importance compared to other factors. Seen in 54 SEC filings.
• Principal Business means the activity focused on exploration for, developing, acquiring, producing, and transporting Oil and Gas. Seen in 21 SEC filings.
• Principal Business means the various activities related to hydrocarbons industry which includes exploration, development, acquisition, production, processing, marketing, transportation and storage of hydrocarbons. It also considers related energy and natural resource business, existing business activity of the company or subsidiaries, convenience stores, retail service stations, truck stops and other public services connected to it. Along with that any activity or business that can be reasonably extended, developed or expanded from these activities. Seen in 21 SEC filings.
• Principal Business means the ventures in Gaming and hotel resorts, as well as activities or businesses directly or indirectly related, similar, or that are a reasonable extension, development, or expansion of these primary activities. This includes golf, entertainment, transportation, recreation, or other activities designed to promote, market, support, develop, construct, or enhance the gaming and other businesses. Seen in 19 SEC filings.
• Principal Business means the type of business engaged by the Borrower and its Subsidiaries on the date of agreement, and any other insurance, insurance services; and businesses related to asset management, risk management, or any business reasonably incidental to these activities. Seen in 18 SEC filings.
• Principal Business means the sport of football at any professional level, regardless of the country where it is played or the governing body. Seen in 13 SEC filings.
• Principal Business means the principal business of the [organization], which is providing internet search services, pinyin input module services, contextual advertising services, online games, and web directory services through personal computers and mobile devices, and subject to such approval as may be required, other business activities and investment as the [organization] may engage in from time to time. Seen in 7 SEC filings.

Please note each of these definitions could apply to a very different context - confirm which is most suitable with your legal team.

‍

Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

‍

Genie Definition 1

• Principal Business means the chief activities and operations of an [organization].

Relevant Contract Types

• Asset Purchase Agreements
• Distribution Agreements
• Services Agreements
• License Agreements
• Shareholder Agreements

Relevant Circumstances

• When an organization seeks to define its main business activities in a legally binding document
• When creating governing documents, like bylaws or operating agreements

Relevant Sectors

• Manufacturing
• Consumer Goods
• Wholesale and Retail
• Real Estate

‍

Genie Definition 2

• Principal Business means the core functional and commercial activities, inclusive of related or incidental businesses, conducted by an [organization].

Relevant Contract Types

• Partnership Agreements
• Franchise Agreements
• Consultancy Agreements

Relevant Circumstances

• When defining what sectors or industries a company conducts business in
• When setting expectations for franchisees or partners
• When establishing the foundation for consultancy agreements

Relevant Sectors

• Hospitality
• Consulting Services
• Financial Services

‍

Genie Definition 3

• Principal Business means the sport of football at any level.

Relevant Contract Types

• Sponsorship Agreements
• Athlete Contract
• Licensing Agreements

Relevant Circumstances

• When describing the source of revenue for a football organization
• When describing employment conditions for an athlete
• When granting rights for use of trademarks or intellectual property associated with a sports organization

Relevant Sectors

• Sports
• Entertainment
• Retail (For sports merchandise)

Each of these definitions could apply to different contexts and industries. Confirm which one is suitable with your legal team.

‍