Legal Definitions - artificial person

An artificial person, also known as a juridical person or legal person, is a non-human entity that the law recognizes as having its own distinct legal identity. This means it can possess many of the same rights, responsibilities, privileges, and liabilities as a human being (a "natural person"). It can own property, enter into contracts, sue others, and be sued, all in its own name, separate from the individuals who created or operate it. Essentially, it's a legal construct that allows organizations to act as a single, unified entity in the eyes of the law.

Here are some examples:

• Example 1: A Local Charity Organization
  Imagine a local charity, "Helping Hands Foundation," which is registered as a non-profit corporation. This foundation can open its own bank account, sign a lease for office space, receive donations, and even employ staff. If a donor makes a large contribution, they are donating to the "Helping Hands Foundation" as a distinct legal entity, not just to its individual board members. If the charity fails to pay its rent, the landlord would sue the "Helping Hands Foundation," not necessarily its director personally.
  This illustrates an artificial person because the "Helping Hands Foundation" has a legal identity separate from the people who run it. It can engage in financial transactions, enter contracts, and be held accountable in its own name, just like a human being could.
• Example 2: A University
  Consider a large university, such as "State University." State University owns extensive land, buildings, and intellectual property. It enters into contracts with professors, researchers, and construction companies. It can also sue or be sued in court. For instance, if a construction project on campus goes wrong, the university itself, as a legal entity, would be involved in any resulting lawsuit, not just its president or board of trustees.
  State University functions as an artificial person because it has a continuous legal existence and the capacity to own assets, incur debts, and participate in legal proceedings independently of the specific individuals who are its administrators, faculty, or students at any given time.
• Example 3: A Homeowners' Association (HOA)
  In many residential communities, a Homeowners' Association (HOA) is established to manage common areas and enforce community rules. This HOA, often structured as a non-profit corporation, collects dues from residents, hires landscaping services, maintains shared facilities like pools, and can fine residents for rule violations. If a resident fails to pay their dues, the HOA can take legal action against them in its own name.
  The HOA acts as an artificial person because it possesses the legal authority to enter into agreements, collect funds, enforce rules, and initiate legal proceedings as a unified entity, distinct from the individual homeowners who are its members.