LEGAL PERSON

An individual, company, or other entity which has legal rights and is subject to obligations.

Kinds of Persons A person is juridically classified in two groups: Natural persons and Juridical persons The first group refers to a human being, who is an individual being capable of assuming obligations and capable of holding rights. The second group refers to those entities endowed with juridical personality who are usually known as a collective person, social person, or legal entity.

Synonyms artificial person juridical person juristic person legal entity collective person social person

LEGAL CAPACITY

ability capability capacity competence eligibility

What is legal capacity? Legal capacity is the ability of a person to take legally valid decision and to enter into binding contractual relations. It makes a person a subject of law and a holder of legal rights and obligations. In other words, legal capacity is the power provided under law to a natural person or a juridical person to enter into binding contracts, and to sue and be sued in its own name.

Legal capacity is particularly important because it affects all areas of life, from choosing where to live, whether and whom to marry, to signing an employment contract or casting a vote.

Kinds of Legal Capacity Some jurisdictions make a distinction between capacity to have rights and capacity to act or exercise these rights. The first part includes the right to be a subject before the law; to be someone who can own property and possess human rights and other rights provided for by domestic legislation. The second part (to exercise rights) goes further and includes the power to dispose of one’s property (i.e. to use it, sell it, give it away or destroy it) and claim one’s rights before a court.

(i) Receptive It is the capacity for inherence of rights and obligations. (ii) Active It is capacity for exercise of rights and discharge of duties.

Persons of Full Capacity A person of full capacity is living human being of: - Age of Maturity. - Free of Mental Illness - Not seized with death illness, and Not seized with solvency lack of capacity = incapacity

Factors Affecting Legal Capacity There are two kinds of factors or circumstances, which affects legal capacity of a person and these factors or circumstances are: (i) Natural Factors or Circumstances (ii) Man Made Factors or Circumstances

Natural Factors or Circumstances There are some factors or circumstances, which are naturally developed and human beings have no control over them. Followings are these factors or circumstances: 1- Minority (typically under 18) Legal capacity of a minor also remains defective to some extent especially till attainment of maturity. For this reason, a minor cannot be held responsible for criminal liabilities and religious obligations. However, a minor can make financial transactions through his/her guardian.

2- Insanity ,mental illness, mental disorder A common observation about an insane is also that he/she cannot make any differentiation between the good and the bad. As he/she has no control over his/her acts, therefore, his/her legal capacity is considered defective one. 3- Idiocy A common observation about idiot is that he/she, sometimes, remains sensible, but, sometimes, becomes insensible in his/her conversation and acts. Therefore, his/her legal capacity is considered defective one.

4- Death Illness During death illness, fear of death mentally dominates the ill person. Although such situation affects the legal capacity of the ill person to some extent, yet his/her death illness does not affect completely his/her legal capacity. 5- Infancy No doubt a child, who is still in his/her mother’s womb, is considered a person, yet his/her life is not certain in the mother’s womb. For this reason, his/her legal capacity is though born., yet the same remains defective one.

Man Made Factors or Circumstances There are some factors or circumstances, which human beings themselves develop and human beings have control over them. Following are these factors or circumstances: (a) Intoxication Drunkenness or drug abuse Legal capacity is only affected when a person is forcibly intoxicated. (b) Insolvent, Bankruptcy In case of insolvency, a person’s legal capacity is affected and, in fact, becomes defective.