Legal Definitions - legal person

In legal terms, a legal person refers to any entity, whether human or non-human, that is recognized by the law as having certain rights and responsibilities. This means a legal person can engage in legal actions, much like an individual person can. Typically, a legal person has the capacity to:

• Sue others or be sued in court.
• Own property, such as real estate, intellectual property, or financial assets.
• Enter into legally binding contracts.

This concept is crucial because it extends legal standing beyond individual human beings to organizations and other entities, allowing them to participate in the legal system.

Examples of a Legal Person:

• A Software Development Company: Imagine a company, "InnovateTech Inc.," that creates and sells cutting-edge software. InnovateTech Inc. is a corporation, which means it is a legal person separate from its founders or employees. If another company copies InnovateTech's patented software code, InnovateTech Inc. can, as a legal person, file a lawsuit against the infringing company to protect its intellectual property. Conversely, if InnovateTech Inc. fails to deliver on a contract with a client, the client could sue InnovateTech Inc. directly.

  This illustrates how a corporation, though not a human, possesses the legal capacity to own assets (the software patent) and engage in legal disputes (suing or being sued) as an independent entity.

• A Charitable Foundation: Consider "The Bright Future Foundation," a non-profit organization established to fund educational programs. This foundation is structured as a legal entity. As a legal person, it can own assets like endowment funds, real estate donated for its offices, and investment portfolios. It can also enter into contracts with schools to provide grants, or with vendors for services. If a donor pledges a large sum but fails to deliver, The Bright Future Foundation, as a legal person, could sue to enforce the pledge.

  This demonstrates that even a non-profit organization, distinct from its board members or staff, can hold property and enter into agreements, exercising legal rights and obligations.

• A City Government: The City of Metropolis is a municipal corporation, making it a legal person. When the city council decides to build a new public library, the City of Metropolis, in its capacity as a legal person, can purchase the land from private owners, sign construction contracts with building companies, and hire architects. If a construction company breaches its contract by failing to complete the library on time, the City of Metropolis can sue that company. Similarly, if a citizen believes the city has violated their rights, they can sue the City of Metropolis directly.

  This shows how a governmental entity, like a city, functions as a legal person, capable of owning property, entering into contracts, and being involved in litigation, separate from the individual officials who govern it.