Legal Definitions - person of incidence

The term person of incidence refers to an individual or entity upon whom a particular legal right, duty, or burden naturally falls or attaches. This attachment typically occurs because of their specific status, ownership, or relationship to a particular property or legal situation. Essentially, it describes the party who is inherently subject to a legal consequence or obligation.

Here are a few examples to illustrate this concept:

• Property Ownership and Easements: Imagine a homeowner who purchases a property. The property deed includes an existing easement, which grants a utility company the right to access a specific portion of the land to maintain underground pipes. In this scenario, the homeowner is the person of incidence because the burden of allowing the utility company access (the easement) automatically falls upon them as the new owner of the property.

• Corporate Leadership Responsibilities: Consider the Chief Financial Officer (CFO) of a publicly traded corporation. By virtue of their position, the CFO has a legal duty to ensure that the company's financial statements are accurate and comply with all regulatory requirements. The CFO is the person of incidence for this specific legal responsibility; the duty to ensure financial accuracy inherently attaches to their role within the company.

• Inheritance and Estate Debts: Suppose an individual inherits a family home after a relative passes away. Unbeknownst to them initially, the property has an outstanding mortgage lien that must be satisfied. The inheritor becomes the person of incidence for this debt; the obligation to address the mortgage lien falls upon them as the new legal owner of the inherited property.