IS THE LAW FIRM IS A LEGAL ENTITY? well before answering this question that whether a law firm has its own legal entity or not, it is important to understand What is law firm? And What is legal entity? It is also important to make it very clear about their concept and their legal jurisdiction, meaning and differences.
ARticle by – Shubhangi Sood
Many of us assume that a legal firm has legal entity. But in reality, it is not true or it can be said that it is wrongly assumed by us that both of them are same of one kind and has jurisdiction in the eyes of the court.
IS THE LAW FIRM IS A LEGAL ENTITY? – WHAT IS LAW FIRM?
IS THE LAW FIRM IS A LEGAL ENTITY? In simple words a firm is group of persons who work together to accomplish their desire goals in effective and in efficient manner. But when the term ‘LAW’ connects the term ‘FIRM’ it has different meaning as compared to the definition stated above.
In simple words LAW FIRM means a group of lawyers or advocates who are associated with each other legally to resolve their client problems. It can be said that a law firm is a business that earn profits and share gain and losses accordingly.
WHAT IS LEGAL ENTITY?
Any such entity which has legal rights and obligations comes under the shed of LEGAL ENTITY. A legal entity has legal has legal capacity to enter into contracts, agreements, assume obligations, incur and pay debts, sue and be sued in its own right, and to held responsible for it actions. IS THE LAW FIRM IS A LEGAL ENTITY?
But there is an exception to this, though a company has its own entity but at the end of the day it is a non-living thing which is required to be manged by the living persons so as a result its actions are regulated by its shareholders and by its directors and its members.
If any of its members perform any kind of illegal actions or indulges with such activities for the sake of company’s benefit or in the name of the company then the court shall not accept such actions and impose the DOCTRINE OF LIFTING UP OF CORPORATE VEIL.
This Doctrine is a legal concept that separates the personality of a corporation from the personalities of its shareholders and protects them from being personally liable for the company’s debts and other obligation (vice-versa). IS THE LAW FIRM IS A LEGAL ENTITY?
Many jurists such as BENTHAM, AUSTIN and many other jurists who has given their views on the legal entity also claims that a firm has no legal entity and also no jurisdiction.
Thus, if an individual wants to file a sit against the such firms then he or she many files such suit against the wrong doer but not against legal firm.
IS THE LAW FIRM IS A LEGAL ENTITY? WELL From the above, it can be easily understood that a legal firm does not has its own jurisdiction and as a result it does not stand anywhere in the eyes of the Curt because it does not have any rights and duties, obligations and further it is also not registered according to the Registration Act, 1908.
Thus, it can be concluded that if any person wants sue any legal firm he may not do so because a legal firm has no legal entity in the eyes of the Court and if such wants to sue then he or she may sue its members but not the firm.
FOR MORE DETAILS – VISIT http://advocling.com