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Legal person

Legal person is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Legal person rather than just read about it. In short: In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for the term "legal person" is that some legal persons are not human persons: companies and corporations (i.e., business entities) are persons legally speaking (they can legally do most of the things an ordinary pe…

Key takeaways

  • Legal person belongs to science; place it in that map before memorising details.
  • Learn the definition first, then one example that makes the definition concrete.
  • Connect Legal person to a quantity you can measure, compute or draw — that is where exam questions come from.
  • Reproduce the core statement of Legal person from memory before moving on to harder problems.

Reference excerpt

In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for the term "legal person" is that some legal persons are not human persons: companies and corporations (i.e., business entities) are persons legally speaking (they can legally do most of the things an ordinary person can do), but they are not, in a literal sense, human beings. Legal personhood is a prerequisite to legal capacity (the ability of any legal person to amend – i.e. enter into, transfer, etc. – rights and obligations): it is a prerequisite for an international organization being able to sign international treaties in its own name.

History The concept of legal personhood for organizations of people is at least as old as Ancient Rome: a variety of collegial institutions enjoyed the benefit under Roman law. The doctrine has been attributed to Pope Innocent IV, who seems at least to have helped spread the idea of persona ficta as it is called in Latin. In canon law, the doctrine of persona ficta allowed monasteries to have a legal existence that was apart from the monks, simplifying the difficulty in balancing the need for such groups to have infrastructure though the monks took vows of personal poverty. Another effect of this was that, as a fictional person, a monastery could not be held guilty of delict due to not having a soul, helping to protect the organization from non-contractual obligations to surrounding communities. This effectively moved such liability to persons acting within the organization while protecting the structure itself, since persons were considered to have a soul and therefore capable of negligence and able to be excommunicated. In the common law tradition, only a person could possess legal rights. To allow them to function, the legal personality of a corporation was established to include five legal rights—the right to a common treasury or chest (including the right to own property), the right to a corporate seal (i.e., the right to make and sign contracts), the right to sue and be sued (to enforce contracts), the right to hire agents (employees) and the right to make by-laws (self-governance). Since the 19th century, legal personhood has been further construed to make it a citizen, resident, or domiciliary of a state (usually for purposes of personal jurisdiction). In Louisville, C. & C.R. Co. v. Letson, 2 How. 497, 558, 11 L.Ed. 353 (1844), the U.S. Supreme Court held that for the purposes of the case at hand, a corporation is "capable of being treated as a citizen of [the State which created it], as much as a natural person." Ten years later, they reaffirmed the result of Letson, though on the somewhat different theory that "those who use the corporate name, and exercise the faculties conferred by it," should be presumed conclusively to be citizens of the corporation's State of incorporation. Marshall v. Baltimore & Ohio R. Co., 16 How. 314, 329, 14 L.Ed. 953 (1854). These concepts have been codified by statute, as U.S. jurisdictional statutes specifically address the domicile of corporations.

Forms There are two kinds of legal persons: human and non-human. In law, a human person is called a natural person (sometimes also a physical person), and a non-human person is called a juridical person (sometimes also a juridic, juristic, artificial, legal, or fictitious person, Latin: persona ficta). Juridical persons are entities such as corporations, firms (in some jurisdictions), and many government agencies. For most purposes they are treated in law as if they were human persons. While natural persons acquire legal personality simply by being born, juridical persons must have legal personality conferred on them by a legal process and, for this reason, they are sometimes called "artificial" persons. In the most common case (incorporating a business), legal personality is usually acquired by registration with a government agency set up for the purpose. In other cases, legal personhood may result from legislation, such as the manner in which the Charity Commission was created in the UK.

Natural persons

Humans have legal personhood, and it is as a rule gained upon birth, though legal capacity, a related concept, for some acts may be age-restricted. In Civil Law countries, legal personhood is regulated by the jurisdictions Civil code, like the Code civil of France. Some international human rights documents and treaties recognise the right to be recognised as a legal person as an individual human right. Examples include Article 6 of the Universal Declaration of Human Rights or Article 3 the American Convention on Human Rights. This serves to prevent humans being stripped of their legal personality, as, for example, slaves were under some systems of slavery. Entities not considered persons would instead be understood as objects, and would be subject to property rights, as slaves were. Nowak considers this right to be one of the rare absolute human rights (meaning it is not possible to restrict it in any way), and additionally non-derogable. The United Nations Sustainable Development Goal 16 advocates for the provision of legal identity for all natural persons, including birth registration by 2030 as part of the 2030 Agenda.

Juridical persons

… excerpt ends here. Continue reading the full article.

Worked examples

Example 1 — a first encounter with Legal person

Start with the simplest possible case. Write down what Legal person claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Legal person before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Legal person ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Legal person

In research
Legal person appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry
Engineering practice reuses Legal person in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom
Legal person is common in secondary-school and first-year university syllabi. It links to neighbouring topics Business economics, Business terms, Corporate law, so understanding it makes those chapters shorter.
In everyday life
Look for Legal person outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.
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How to study Legal person in 20 minutes

  1. Read the reference excerpt below once, without taking notes.
  2. Close the page and write down what Legal person means in your own words.
  3. Compare your version with the excerpt and mark what you missed.
  4. Work through the three examples above with pen and paper.
  5. Explain Legal person out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Legal person in simple terms?

In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for the term "legal person" is that some legal persons are not human persons: companies and co…

Why does Legal person matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Legal person?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Legal person.

Tags

  • Business economics
  • Business terms
  • Corporate law
  • Financial law
  • Legal entities
  • Legal terminology

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