Legal Definitions - juristic person

A juristic person refers to an entity, other than a natural human being, that the law recognizes as having its own distinct legal identity. This means it can possess rights, incur obligations, own property, enter into contracts, and sue or be sued in its own name, separate from the individuals who operate or are associated with it. Essentially, the law treats these entities as if they were individuals for many legal purposes.

Here are some examples to illustrate this concept:

• Example 1: A Corporation

  Imagine "Global Solutions Inc.," a large software company, signs a multi-million dollar contract with a client to develop a new application. If Global Solutions Inc. fails to deliver the software as promised, the client would sue "Global Solutions Inc." directly, not its CEO or individual employees. This demonstrates that "Global Solutions Inc." is a juristic person because it can enter into a binding contract and be held legally accountable in its own right, separate from the human beings who run it.

• Example 2: A Non-Profit Organization

  Consider "The Community Arts Foundation," a registered non-profit organization dedicated to promoting local artists. The Foundation receives a generous donation of a building to establish an art gallery. The building is legally owned by "The Community Arts Foundation" as an entity, not by its founder or board members personally. This illustrates that the Foundation is a juristic person because it can own property in its own name and manage assets independently for its stated purpose.

• Example 3: A Government Agency

  The "State Department of Transportation" enters into an agreement with a construction company to build a new highway. If the construction company fails to meet safety standards or deadlines, the State Department of Transportation, as a government body, could initiate legal action against the company. This shows the Department of Transportation acting as a juristic person, capable of forming contracts and enforcing its rights through legal channels on behalf of the state.