For types of business theories of corporate personality pdf, see Types of business entity. The term “legal person” is however ambiguous because it is also used in contradistinction to “natural person”, i.
While human beings acquire legal personhood when they are born, juridical persons do so when they are incorporated in accordance with law. In international law, consequently, legal personality is a prerequisite for an international organization to be able to sign international treaties in its own name.
Artificial personality, juridical personality, or juristic personality is the characteristic of a non-living entity regarded by law to have the status of personhood. The concept of a juridical person is a fundamental legal fiction.
They may sue and be sued, enter contracts, incur debt, and own property. Entities with legal personality may also be subjected to certain legal obligations, such as the payment of taxes.
An entity with legal personality may shield its members from personal liability. Both have separate legal personality. The concept of juridical personality is not absolute.
The concept of a juridical person is now central to Western law in both common-law and civil-law countries, but it is also found in virtually every legal system. Corporations are bodies corporate created by statute or charter. A corporation sole is a corporation constituted by a single member, in a particular capacity, and that person’s successors in the same capacity, in order to give them some legal benefit or advantage, particularly that of perpetuity, which a natural person could not have had.
Examples are a religious officiant in that capacity, or The Crown in the Commonwealth realms. A corporation aggregate is a corporation constituted by more than one member. Unincorporated associations, that is aggregates of two or more persons, are treated as juridical persons in some jurisdictions but not others. Partnerships, an aggregate of two or more persons to carry on a business in common for profit and created by agreement.