In a three-tier architecture, business logic is any code that is not specifically related to storing and retrieving data (that's "data storage code"), or to formatting data for display to the user (that's "presentation logic"). It makes sense, for many reasons, to store this business logic in separate objects; the middle tier comprises these objects. However, the divisions between the three layers are often blurry, and business logic is more of an ideal than a reality in most programs. The main point of the term is, you want somewhere to store the logic and "business rules" (another buzzword) of your application, while keeping the division between tiers clear and clean.

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J. Jeyaseelan
Everything Possible