What are Legal Subjects?
Legal subjects, also known as subjects of law, play a fundamental role in the legal system. They refer to any legal reference that involves the rights and responsibilities enjoyed and/or exercised by a legal person. "Legal persons" express simply to who the law applies. In the private sector, such legal persons are individuals and/or groups employed within a legal system, whilst in the public sector such legal persons refer to a collective body of a nation or a country as a whole. At its core, the institution of legal subjects introduces the concept of legal personality that refers to a subject which possesses a legal existence. Whereas the definition of "legal personality" denotes the capacity to be a body that enjoys rights and/or performs duties recognised by law, so long as such subjects possess legal personality, they can be recognised as legal persons and as such can be labelled legal subjects. In most jurisdictions, when a subject fails to demonstrate any recognition by law, such subjects are considered to be non-legal persons or non-legal subjects.
However, the distinction between legal persons and non-legal persons is not quite simple as legal subjects may also refer to a group of individuals who carry out their duties or responsibilities through the use of a named representative. In legal terms , reference to such groups of people involves legal persons conducting business on behalf of the common interest of those individuals as a whole. For instance, legal subject takes into account individuals and/or groups employed in law firms or law chambers. Such groups of individuals conduct their responsibilities through their representative leaders or business partners and work on behalf of the interests of those groups specifically for their benefit as a business entity. Thus, legal subjects may also refer to groups of people who are legally recognised as a collective body.
In general terms, legal subjects may take two basic forms, namely natural persons and legal persons. Natural persons refer to human beings and consequently human lawyers constitute natural legal persons whereas legal persons may refer to those groups of people that work together as a business and may therefore qualify as legal subjects because they are recognised by law as legal persons. Since lawyers are human beings, they can only claim legal personality in their natural capacity. In contrast, a legal person may be either a natural or an artificial entity since "artificial person" also relates to legal persons such as groups of individuals. In a nutshell, legal subjects may comprise either natural persons or groups of individuals who are recognised as legal subjects under the law.
Types of Legal Subjects
Legal subjects are classified into two categories: natural persons and legal entities. A natural person or human being is a legal subject simply by virtue of being human. All human beings, regardless of age, sex, intellect, race or condition (even insane, absent, dead, of infamy or slave) have legal personality. There are exceptions for age (e.g., a minor child, a person under the age of 18) and conditions (e.g., insane or dead) where special provisions, such as disability of majority, must be applied. A legal person or entity is an artificial person created by law. It can be a corporation, association, government agency, nonprofit entity, or fictitious business name. Legal entities do not exist as natural persons do, because they are not beings created by God. Legal entities are artificial people created by law to facilitate actions by or against collections of people or assets (such as corporations), to limit liability to the assets of the entity, or for other purposes of convenience.
Rights and Obligations of Legal Subjects
The rights and duties of the legal subjects vary according to the category (juridical persons and physical persons) to which they are part. The distinction is reflected in the Civil Code and also, among other laws, the Constitution, Article 69 of the Code of Commerce, the General Regulation of Companies, the Investor’s Bill, the Regulation of the Consumer Protection Office and the Public Procurement Law.
A "person" (juridical person and natural person) is a unit of analysis, according to the nature of the issues involved. In general terms, it is any entity or individual capable of acquiring and enjoying rights, and also being subject to obligations and responsibilities arising from the law, including the source of contractual and tort liability.
There are two categories of persons: juridical and physical persons.
Physical persons are natural persons, that is, individuals who are capable of acquiring and enjoying rights, and also being subject to obligations and responsibilities arising from the law, including the source of contractual and tort liability.
All human beings, born or unborn, have legal subjectivity, although the unborn child shall only exercise rights and assume obligations with the limits and under the conditions determined by law. Thus, for example, the unborn child may exercise the right to life or exclusion from a criminal liability; or be a party under a prenatal protection order; but not own property.
Juridical persons are artificial persons, referring to those legal persons who enjoy legal capacity, that is, they are entitled to rights and duties under the law.
Capacity of Legal Subjects
Legal subjects may possess the legal capacity to act, which means they are capable of exercising their rights. The causes of this capacity can derive from being of sufficient age, or be of sufficient understanding, such that they have the mental capacity to exercise legal rights. Lack of legal capacity may exist when there is lack of age, or lack of mental capacity.
The incapacity of a legal subject may arise from being underage, or in cases in which the subject has a mental disorder, throughout the duration of this incapacity the legal subject is considered legally incapable of performing any act, with the exception of those legally authorized as a special exception.
When such incapacity arises in a minor under the age of fourteen, this incapacity may be lifted once reaching fourteen years of age, and thus a minor under fourteen years of age may have the legal capacity to act, depending on the circumstances.
In the same vein, the incapacity of a legal subject may persist throughout the extent of incapacity, as is the case of a legal subject reaching age of majority, but who remains mentally incompetent. Such incapacity arises from the mental incompetence which obstinately prevents said legal subject from using his mind freely, to act accordingly, and which received a favorable opinion from a medical expert.
Role of Legal Subjects in Agreements
Legal subjects take part in contractual relationships for a variety of purposes, whether it be for commercial transactions, employment agreements, quiet enjoyment of a residence, or acquisition and mortgaging of immovable property, among others. For any contract to be valid and enforceable, legal capacity allows legal subjects to act within the confines of their legal personality (i.e. whether as persons or juristic persons) to participate in matters before the law.
Legal subjects do not necessarily always have legal capacity or identity; hence the need to apply certain principles to ascertain when a person has, or is able to acquire, either the capacity or the identity required. With regard to establishing the subject of legal proceedings (i.e. actio), the determination of legal personality and capacity are both relevant in establishing whether a party can institute, defend or intervene in legal proceedings; whether in their own name or in the name of another legal personality (i.e. natural person).
With regard to the place of legal subject within the law of obligations, legal subject is the basis of legal personality, which grants capacity to act within the confines of the law. The capacity of a person to act determines when a legal subject can conclude a contract. Those lacking legal personality include the insane, minors and companies that have not yet commenced trading or which have been dissolved for a period of three months.
The general rule is that legal personality is acquired on natural persons at the age of 18 and on incorporation for juristic persons. Legal identity (ius) is the legal status of a legal subject relative to other legal subjects and the law in general. It allows legal subjects to defend or fulfil claims and establish rights and obligations. Therefore the legal subject exists as a party to a legal relationship.
Legal Subjects in Various Communities
Legal Subjects in the United States
The legal definition of subject is the same as in legalese, which has been defined in legalese as a thing or person that is the focus of legal action. In the United States, the United States Code ยง 1, Title 1, Chapter 1 states that the words "citizen," "denizen," and "inhabitant" are construed to mean the same as the word "inhabitant." Legalese in the United States defines a citizen as a free person. In the United States legal system, you are considered a legal subject of that state where you are domiciled. United States laws enforce that if you are a US citizen and you are required to pay taxes on income within the territory of the US, you are a legal subject of the US.
Legal Subjects in the European Union
Subjects among European Union states refer to the European economic area, which includes twenty-eight member states of the European Union. The European Union legal system provides for the free movement of goods and people among countries . Member states referred to them as citizens or nationals. It is construed that you are a subject of that EU member state if you reside in that state. Member states refer to it as citizenship in their domestic law.
Legal Subjects in the United Kingdom
The United Kingdom is made up of four countries, England, Wales, Northern Ireland, and Scotland. In the United Kingdom legal system, you are considered a subject of law due to citizenship within the United Kingdom. Legal subjects in the United Kingdom are regulated by the British Nationality Acts.
Legal Subjects in Japan
Japan is a constitutional monarchy. The Japanese Imperial House is an incorporeal legal entity, which, therefore it is not a subject of law. Japanese citizens are referred to as subjects. Japanese law confers the legal obligations of citizenship on both foreigners who have obtained naturalization and those who have just acquired the citizenship of Japan.
Issues Confronting Legal Subjects
Navigating the complex landscape of laws and regulations that govern legal subjects can be an arduous task. One major issue consistently faced by legal subjects is identity verification, particularly in contexts where natural persons must establish their legal identity before proceeding with a transaction or entering into a contract. Without proper identification, the legal subject may experience delays, face fines or even be prohibited from a transaction altogether.
Another issue is capacity, which relates to the ability or authority of a legal subject to engage in a transaction or contract. For example, when it comes to minors, those under 18 years of age usually lack the capacity to contract, meaning their agreements may be voidable at their discretion. This can impact any legal subject involving a party who does not have the authority to enter into a contract, as well as potential exposure for issues of misrepresentation or fraud by the legal subject if the contract is later disclaimed.
A third challenge faced by legal subjects is the issue of cross-jurisdictional laws. Legal subjects often operate in multiple jurisdictions, which can present complexities where some laws are not applicable. For example, a natural person residing in Canada will have to comply with Canadian laws concerning employment, criminal records, protecting the legal rights of minors, tax, human rights and privacy. Many of these laws have different provisions based on provinces and territories. As it relates to legal subjects, it is important to distinguish between those that have limited capacity, such as minors, and those who lack capacity, such as individuals who were once legally competent but have since become incapable after an accident.
Current Developments Affecting Legal Subjects
One of the more recent trends concerning legal subjects is the formal recognition of artificial intelligence (AI) as some sort of legal subject. This is based on the premise that intelligence, particularly the higher order of intelligence, is a requisite for legal personality. Following this view, it has been suggested that AI agents, like intelligent aliens, may be afforded some legal subject status by virtue of their intelligence alone.
While this is not strictly a universalization of legal personhood, it is an expansion of the legal subject concept from individual humans to those who are capable of possessing legal rights and obligations. This, in turn, can be expected to lead to an expansion of the legal entities, i.e., future legal subjects, and a consequent expansion of the role of the law in society. It also indicates a shift of trend toward assessing the qualification of a legal subject in terms of intelligence and autonomy, rather than in terms of naturalness or given status of human persons.
On an international law level, the recognition of legal subjects may be expanding beyond nation-states as well. Traditionally, international law only recognizes nations as subjects of international law, capable of enforcing rights against each other in international courts. However, the issue of recognition of groups other than states is starting to be revisited, as groups such as nations and nation-like groups continue to seek rights to self-determination and force an expansion of the recognition of autonomy other than in terms of state autonomy.
These changes in the concept of legal and other subjects of international law may significantly alter the foundations of public international law. Future legal subjects, such as those becoming a trend today, may include not only natural individuals but also supranational organizations such as intergovernmental organizations, interest groups, or even the people in their collective corporate state.
Final Thoughts
In conclusion, the importance of understanding and identifying legal subjects cannot be overstated. This crucial skill enables legal practitioners to efficiently navigate complex legal waters while striving for strategic and practical solutions. A legal subject has legal personality in the eyes of the law. Whether it is a natural person, a corporation, or any other entity, a legal subject acts in various capacities: as a plaintiff, a defendant, or an interested party who presents claims and counterclaims, and submits evidence to prove its rights.
Without proper identification of the legal subject, a case cannot move forward effectively. Without knowing how the legal subject should act in a legal context, the attorney handling the case may be unable to predict and establish its rights and obligations. The legal system cannot effectively react to a legal subject without first being able to identify them, which is why legal subjects are so important.
As we have now seen, legal subjects can be divided into three categories: natural persons (people), legal persons (companies), and non-jural legal subjects (like estates). Each of these subjects has unique responsibilities, privileges , and considerations that contribute to their overall impact on the legal system. Natural persons possess individualized rights and obligations that regulate how they should conduct themselves within the legal framework. Legal persons, on the other hand, are created and defined by law or statute. Finally, non-jural legal subjects are entities that carry out a specific purpose. The legal system sets the rules for how these subjects must operate, including how decisions are made, the different types of properties involved, and the way compensation is distributed.
The importance of legal subject identification extends beyond theoretical analysis; it is essential for real-world applications, particularly in legal practice. Knowledge of how different legal subjects interact with one another is indispensable for attorneys and legal professionals who must represent their clients and help them navigate complex legal procedures and outcomes. Legal subjects are central to many legal issues, from issues of corporate responsibility to complicated matters of estate planning. The passage of time will bring change and evolution to the field of law, but legal subjects will always have a place in all areas of the legal landscape.