Uniform Securities Agent State Law (Series 63) Practice Exam

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In legal terms, what qualifies as a "legal person"?

An individual who can sign contracts
A person with no legal rights
An organization that cannot own property
A deceased individual

The correct answer is: An individual who can sign contracts

In legal terms, a "legal person" refers to any individual or entity that has the capacity to have legal rights and obligations, which includes the ability to enter into contracts. Therefore, individuals who can legally sign contracts are classified as legal persons because they possess the legal standing to engage in legal transactions and hold rights under the law. This recognition extends beyond natural persons—actual individuals—to also include legal entities such as corporations and organizations, which can own property and engage in business activities. The other options do not constitute legal persons because they lack the requisite legal rights. For instance, a person with no legal rights would not have the capacity to engage in contracts or own property. Furthermore, organizations that cannot own property are also not recognized as legal persons because property ownership is a fundamental aspect of legal status. Lastly, a deceased individual, while having once been a legal person, loses that status upon death, as they can no longer hold rights or obligations.