Legal Definitions - legal personality

Legal personality refers to the quality or status of an entity that allows it to be recognized as a subject of legal rights and obligations. This means the entity can perform legal acts, such as owning property, entering into contracts, suing others, and being sued in its own name.

Both individual human beings (often called "natural persons") and certain organizations (known as "juristic" or "artificial persons," like corporations) can possess legal personality. It grants an entity the capacity to act independently within the legal system.

• Example 1: A Corporation

  Imagine a company called "Global Solutions Inc." that develops software. As a legally incorporated entity, Global Solutions Inc. possesses its own legal personality, distinct from its founders, employees, or shareholders. This means the company itself can sign a lease for its office building, enter into contracts with clients to provide software services, hire employees, and even be sued if it fails to deliver on a contract. The legal actions and liabilities belong to Global Solutions Inc. as an entity, not directly to the individuals who own or operate it.

• Example 2: An Individual Human Being

  Consider Maria, an adult citizen. Maria, as a natural person, inherently has legal personality. This enables her to legally purchase a house, open a bank account, sign an employment contract, and vote in elections. If Maria were to cause a car accident due to negligence, she could be held personally liable and sued in court. Her legal personality allows her to engage in these activities and be held accountable under the law.

• Example 3: A Non-Profit Organization

  Take the "Community Arts Collective," a registered non-profit organization dedicated to promoting local artists. Once legally established and registered, the Community Arts Collective acquires legal personality. This allows the collective, as an entity, to receive grants and donations, own assets like an art studio, employ a director, and enter into agreements with local government to host public art events. Its legal personality ensures it can operate, manage its finances, and be held responsible as an organization, separate from its board members or volunteers.