What is a juristic entity?

A juristic entity refers to any legal organization that has its own separate legal personality, which allows it to own property, enter into contracts, and sue or be sued in its own name. Corporations are prime examples of juristic entities, as they are recognized by law as distinct from their shareholders. This legal status provides corporations with rights and responsibilities similar to those of individuals, but with the added benefit of limited liability for their owners.

In contrast, individual ownership of property pertains to natural persons rather than juristic entities. A business partnership, while it involves multiple individuals cooperating in a business activity, does not constitute a separate legal entity in the same way a corporation does, since the partners are personally liable for the debts of the partnership. An informal association of people also lacks the formal legal recognition that characterizes a juristic entity, as it typically does not have a structured organization or legal standing. Thus, identifying a corporate structure as a juristic entity distinctly highlights its ability to operate independently within the legal system.