Legal Entities and Business Law: A Comprehensive Guide

The Person

Definition

An entity with the capacity to have rights and obligations.

Individual Person (Natural Person)

• Start: Birth
• Extinction: Death
• Capacity:
  • Full (to have rights and obligations)
  • In action (capacity to enter into contracts on one's own)

Group of Persons (Legal Entities)

A group of different people joined together with a common purpose. There are two types of collective entities:

Associations of Public Interests:

Cannot divide profits among its members.

• Foundations: The aim cannot change.
• Associations: The aim can change.
• Corporations: Created by public authority, do not have shareholders, and have to provide an efficient public service.

Private Legal Entities:

Profit can be divided. These are commercial and civil legal entities.

• Start: Constitutional contract
• Extinction: Any cause

Representation

Voluntary Representation

• Direct: Acting on behalf of and in the name of another person.
• Indirect: The representative is the only person liable for their acts.

Legal Representation

• Custody: Necessity
• Guardianship: Exists because the law imposes it.
• Representation of a Legal Person: Partly voluntary, partly legal, there is a physical need.

Subjective Right

A consequence of the existence of legal norms that allows individuals to have rights. Derecho que se tiene para exigir (to demand) cosas a los demás.

Obligation

Sources of obligation:

• Contracts: An agreement between at least two parties. There must be limitations on their form and content.
• Unlawful Damage: Obligation to compensate for financial damage. Physical/material damage is compensated, but moral damage is not. Unlawful act: en contra ley.

Business Entity and Law

The Commercial Code is a set of regulations that affect business activity - traders.

Business Activity

1. Classification: Natural person or legal entity.
2. Classification: Public or private.

Consumers

Natural or legal persons acting in the sphere that falls outside business or professional activity.

Special Consumer Rights

1. Correct information about goods.
2. Protection of their economic and social interests.
3. Compensation for damages.
4. Protection of their rights.