LEGAL CONCEPTS

Is it possible that a one month old baby Liisa a company owns a piece of land?

1. LEGAL CAPACITY (oikeuskelpoisuus) = ability to possess and to be in debt => being a legal subject, having legal personality Natural person (luonnollinen henkilö) Legal capacity - commences at birth - ceases at death

2. Juristic (juridical) person (oikeushenkilö) Legal capacity Commences when an organisation is “born” Generally by official registration Ceases when the existence of the organisation ends On making a notification of dissolution to a register By dissolution because of bankruptcy By authorities clearing the register of non-active organisations Ltd, Co, Inc.

Today Liisa is 15 years old and she decides to sell her piece of land and buy a horse instead. Can she do it? Could the company sell the land it owns?

2. CONTRACTUAL CAPACITY = LEGAL CAPABILITY (oikeustoimikelpoisuus, toimintakelpoisuus) = capacity to make legal transactions => right to establish or amend or abolish rights

1. Natural persons Contractual capacity begins when a person attains the age of 18 ends when he dies Unless his competence is restricted

2. Juristic persons Contractual capacity begins and ceases as legal capacity

Natural persons who lack contractual capacity: 1. Adults unable to take care of their financial affairs or their property => Court may restrict the person’s competence as to given property or given transactions or declare him incompetent / ward Court appoints a guardian

Persons under 18: minors => - the parents are guardians by virtue of law - court may also appoint a guardian Minor’s restricted contractual capacity: (rajoitettu oikeustoimikelpoisuus) 1. A minor can take legal actions usual and of little significance 2. A 15-year old can make an employment contract as an employee and terminate it 3. A 15-year old has the right to dispose of his own earnings, the proceeds of these earnings and what he has bought with his earnings

STATUS OF NATURAL PERSONS BIRTH DEATH Legal capacity Contractual capacity = Legal capability Restricted legal capability AGE 18 15 Penal responsibility / criminal liability (rikosoikeudellinen vastuunalaisuus) Indemnification liability / liability for damages (siviilioikeudellinen vastuunalaisuus) Modified from: Kivelä, H. – Nordell, R. 2001. Yrittäjän oikeutta. Helsinki.