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Person: Definition, Example and Related Terms

What is a Person ?

In a commercial context, a 'Person' is a term that is not limited to a natural individual. In legal terms, it can refer to any entity that can enter into contracts, and have rights and duties. This can include corporations, partnerships, associations, and government agencies, as well as individuals. The concept of a 'Person' is important in contract law because only a 'Person' as defined can enter into a contract, hold property, sue or be sued. It is fundamental in understanding the parties involved in a contract and their respective responsibilities and liabilities. When we talk about a 'Person' in a commercial contract, we are referring to the party that has agreed to the terms and conditions of the contract and is obliged to fulfill the responsibilities as outlined in that contract. The rights and obligations of a 'Person' in a contract can vary widely depending on the specifics of the agreement and the jurisdiction in which the contract is enforced.

Example(s)

  • Scenario Description
    A software development company enters into a contract with a client for the provision of software services. In this scenario, both the software development company and the client are considered 'Persons' in the context of the contract. They both have rights and obligations under the contract. For example, the development company is obligated to deliver the agreed-upon software services, and the client is obligated to make payments as agreed. Both parties have the right to expect the other party to fulfill their obligations. If either party fails to meet their obligations, the other party has the right to take legal action.
    A manufacturing company contracts a transportation company to deliver its products to various locations. In this example, the manufacturing company and the transportation company are both 'Persons'. They have entered into a contract, each with their own set of rights and responsibilities. The manufacturing company must provide the goods for transport and the agreed-upon payment, while the transportation company is responsible for delivering the goods to the specified locations within the agreed time frame. If either 'Person' fails to fulfill their obligations, the other has the right to seek legal recourse.

Related terms