Legal Entity

Definition and Citations:

A lawful or legally standing association, corporation, partnership, proprietorship, trust, or individual. Has legal capacity to (1) enter into agreements or contracts, (2) assume obligations, (3) incur and pay debts, (4) sue and be sued in its own right, and (5) to be accountable for illegal activities.

TLD Example: As a legal entity under state law, the corporation and its officers could be charged with violating the criminal laws.

See, Business Entity Types: Explanations and Overview.