Legal Definitions - moral person

In legal terms, a "moral person" refers to an entity that is not a human being but is recognized by law as having many of the same rights and responsibilities as a natural person. This concept is more commonly known as an artificial person or juristic person. Such entities can own property, enter into contracts, incur debts, sue others, and be sued themselves, all independently of the individual people who manage or own them.

Here are some examples illustrating the concept of a "moral person":

• Example 1: A Corporation

  Imagine "Global Innovations Corp.," a technology company, enters into a multi-million dollar agreement with a software development firm. If the software firm fails to deliver on its promises, Global Innovations Corp. can initiate a lawsuit against them. Conversely, if Global Innovations Corp. breaches the contract, the software firm can sue the corporation directly.

  This illustrates the term because Global Innovations Corp. is not a single human being but a legal entity. It can enter into binding contracts, own assets, and engage in legal disputes (sue or be sued) as if it were an individual, separate from its founders, employees, or shareholders.

• Example 2: A Non-Profit Organization

  Consider "Helping Hands Foundation," a registered charity dedicated to providing aid to disaster victims. The foundation receives donations, purchases supplies, and owns vehicles and warehouses in its own name. If one of its vehicles is involved in an accident, the lawsuit would typically be filed against Helping Hands Foundation, not against its individual board members or volunteers.

  This illustrates the term because Helping Hands Foundation, despite being composed of many individuals, acts as a "moral person." It holds property, manages funds, and can be held legally accountable for its actions as a distinct entity, separate from the people who operate it.

• Example 3: A Municipality

  The City of Metropolis decides to build a new public library. It issues bonds to finance the construction, hires a construction company through a contract, and will ultimately own and operate the library building. If there are issues with the construction, the City of Metropolis would be the party to sue or be sued.

  This illustrates the term because the City of Metropolis, as a municipal government, functions as a "moral person." It has the legal capacity to incur debt, enter into contracts, own property, and take legal action in its own name, distinct from its individual citizens or elected officials.