What is a legal person in contracts? Easily explained

The legal person is a term from German law. This article provides an easy-to-understand explanation of what is behind this specialist terminology.

Legal person as a concept of German law

The term "legal person" does not mean a single person in German law. It is used to refer to either a wealth of assets or a group of people.
The legal person is relevant, for example, if you want to found an association or a foundation. Legal capacity must be created here. This means that the association can file a lawsuit in court or even be sued.
In the case of an association or a foundation, this would hardly be possible without the instance of the legal person: No member can file a lawsuit on behalf of the entire association or be sued on behalf of the association.
So there would be no legal capacity and therefore no legal security. Therefore, the entire association or even the foundation is considered to be a legal person who is responsible and can be held accountable if necessary.
In addition, the legal person is still divided according to public and private law.

In private law, legal capacity is achieved in the form of a legal person by entry in a register, such as the register of associations.
In the case of a foundation, the state issues a license to create a legal person.
However, certain types of business in private law also count as legal entities. These include, for example, the registered cooperative (eG), the stock corporation or the GmbH.
A legal entity under public law is enacted by law. This affects foundations under public law, corporations and institutions.

In the next article, you will find out what punishment threatens according to the Criminal Code for failure to provide assistance.