Legal Entity- Participant of Civil Law Relationship
What is Legal Entity?
A person, or using legal terminology, an INDIVIDUAL, is not the only participant of legal relations. The process of capital concentration and centralization driven by transition from natural to commodity economy resulted in the need to create a participant in legal relations SEPARATE FROM THE INDIVIDUAL, which is known now as LEGAL ENTITY A LEGAL ENTITY becomes the embodiment of interests and capital of a certain group of individuals.
In the absence of a physical form of existence, a LEGAL ENTITY becomes the fiction of a human being, its shadow. This is the nature of its participation in civil relations. This explains the name of such a participant - LEGAL ENTITY.
As a participant of civil-law relations, the LEGAL ENTITY is vested with the same rights and obligations as an INDIVIDUAL but regardless of the dependence of a legal entity from the will of its founder, it becomes an independent participant in civil relations. In other words, according to law, a legal entity is a fiction of an individual created through artificial concentration of rights and obligations in order to satisfy the property or non-property interest of its creator.
This is the main essence of the theory of fiction by Friedrich Carl von Savigny, who first provided a theoretical justification for the nature of a legal entity in 1840.
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Also See - NATURE and SIGNIFICANCE OF LAW