A legal person is an entity recognized by law as able to hold rights, owe duties, own property, sue, or be sued.
Why a legal person matters
A legal person matters because the law can recognize entities other than individual human beings. Corporations, limited liability companies, trusts, estates, and government entities may have legal rights and obligations separate from the people involved with them.
This status affects liability, ownership, contracts, litigation, and regulation.
Where a legal person appears
Legal-person issues appear in business formation, contracts, lawsuits, property ownership, estate administration, corporate liability, and statutory interpretation.
Practical example
A corporation signs a lease and is sued for breach of contract. The corporation is treated as a legal person separate from its shareholders.
How a legal person differs from nearby terms
A legal person differs from a natural person because a natural person is a human being. It differs from legal capacity because capacity is the ability to take certain legal actions, while legal personhood is recognition as a rights-and-duties holder.
Related terms
Quick knowledge check
Why can a corporation be sued even though it is not a human being?