LEGAL PERSONS

A person, in general parlance means a human being. However, the Law defines a person as both a human being and an entity. This human being/entity is recognized by law and has attached to it certain rights and duties which it enjoys and is obliged to. Any human being/entity recognized by Law as having rights and being liable to duties is called a legal person. In effect, there are two kinds of legal persons, Natural Person and Artificial Person. We are going to focus our discussion on the legal person’s right to sue and to be sued to a law court. In other words, how much qualifications a legal person has to be recognized as a party to an action by a law court.

NATURAL PERSON

A natural person refers to an individual or a human being. You, as a human being, are a natural person. As a natural person, the law empowers you to sue in your name, it also makes you liable to be sued in your name. What this means is that you can commence/institute/file an action in any court of law in your own name as an individual/human being/legal person. Also, a case can be brought/instituted/commenced/filed against you by another legal person(natural or artificial person). Every human being is a natural person who can sue and be sued in his own name. However, some natural persons do not have the legal capacity to sued and by sued by their names alone. These are- a minor, a person of unsound mind, a bankrupt. These persons can sue and be sued through their representatives. Note, that a natural person can only exercise these rights as a living being. In other words, the dead has no personal rights to enjoy nor personal duties to observe(actio personalis moritur cum persona).

ARTIFICIAL PERSON

An artificial person is also called a juristic person. An artificial person is a body corporate consisting of a collection or succession of natural persons. Where a group of persons(two or more) come together to form a body recognized by law, the law accords it(the body) legal personality with the capacity to sue and be sue in its registered name. A good example of an artificial/juristic person is a company registered under the Part A of the Companies and Allied Matters Act, Cap C20, LFN, 2004. Every artificial person is a separate entity different from the persons forming it. It bears its own name, not the names of the persons forming it and so, it commences legal action in that name and a legal action can be brought against it in that same name. It is registered under the law by its name and this name is generally called its corporate name. Thus, a juristic person is a body corporate with the right to sue and be sued in its corporate name.

CONCLUSION

I will give you an encompassing scenario to explain the topic- Lets assume your name is James. James, Kelvin and Jack are three great friends. You all agreed to start up a business with the object of selling agricultural produce. You chose to register the business as a company with the name Jakeja Nig. Ltd. This you did and Jakeja Nig Ltd flourished within a period interval of five years of establishment. You (James) have Samson(a petty trader) as your tenant occupying a three bedroom flat in your apartment. Samson is also a long term customer of Jakeja Nig Ltd. But presently, Samson is experiencing some financial challenges in his petty trade. To this ends, he is owing you(James) three years arrears of rent while he is owing Jakeja Nig. Ltd a debt sum of N1,500,000. How do you sue Samson to recover these debts. Samson is a natural person that can sue and be sued. Jakeja Nig. Ltd is a juristic person that can sue and be sued. James (you) is a natural person that can sue and be sued. Jakeja Nig Ltd is a juristic person that can sue and be sued. Now, James can sue Samson for the arrears of rent in his own name(that is, James). Jakeja Nig Ltd can sue Samson for the sum debt in its corporate name( that is, Jakeja Nig Ltd). James cannot sue Samson for the debt the latter owed Jakeja Nig. Ltd. Why, because Jakeja Nig. Ltd is a separate being distinct from James, even though James is one of the natural persons who formed Jakeja Nig. Ltd. Jakeja Nig Ltd can bring an action against Samson in the name of Jakeja Nig Ltd, not in the name of James nor Kelvin nor Jack nor the three as a whole.

 

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