A corporation is an association of persons recognized as a legal entity. It has an independent legal existence. It is a body corporate or a juristic person. It is an abstraction of law. This statement is a correct observation.
A corporation is an artificial person in that inter alia, it is created through a legal process for example charter, statute or registration. The person formed is juristic or abstraction of law. In company law, this is referred to as the rule in Salomon V. Salomon and Co. Ltd.
A corporation has several characteristics peculiar to it, for example:
- Perpetual Succession: being a creation of law, it has capacity to exist in perpetuity, it can only be killed through a legal process.
- Sue or be sued: a corporation has capacity to sue to enforce its rights and maybe sued on its obligations.
- Capacity to contract: a corporation has legal ability to enter into contractual relationships. It can hire and fire.
- Owing of Property: it has capacity to own property. The property of a corporation is vested in it. It has an insurable interest in it.
- Common Seal: a corporation has a common seal to authenticate its transactions.