Legal Definitions - Person

In legal terms, a person refers to any entity that the law recognizes as having its own distinct rights and responsibilities. This means such an entity can take legal action, be subject to legal action, own property, and enter into binding agreements. The concept of a "person" in law extends beyond individual human beings (who are called "natural persons") to also include organizations like corporations, partnerships, or other legally formed entities (which are known as "legal persons").

• Example 1: An Individual Buying a Home

  Maria, an individual, decides to purchase a house. She signs a mortgage agreement with a bank and a sales contract with the seller.

  Explanation: Maria is a "natural person." As such, she has the legal right to own the property, the legal obligation to repay her mortgage, and the capacity to enter into legally binding contracts for the purchase and financing of her home. If the seller failed to transfer the deed, Maria could sue them.

• Example 2: A Corporation Entering a Business Deal

  “Global Innovations Corp.,” a technology company, signs a multi-million dollar contract with a manufacturing firm to produce new electronic components.

  Explanation: “Global Innovations Corp.” is a "legal person" (specifically, a corporation). It has the legal standing to enter into this significant contract, own the intellectual property developed, and is legally obligated to fulfill its terms. If the manufacturing firm fails to deliver the components, "Global Innovations Corp." could sue them for breach of contract.

• Example 3: A Partnership Facing a Lawsuit

  “Artisan Bakery & Cafe,” a partnership owned by two friends, is sued by a customer who claims they suffered food poisoning after eating a pastry from the cafe.

  Explanation: “Artisan Bakery & Cafe” is a "legal person" (a partnership). As a legal entity, it can own the bakery's assets (like ovens and equipment) and is recognized by law as having obligations, including the responsibility for the safety of its food products. Therefore, the partnership itself can be sued and held legally accountable for the customer's claim.