Legal entity

(redirected from Commercial entity)
Also found in: Legal, Acronyms.

Legal entity

A person or organization that can legally enter into a contract, and may therefore be sued for failure to comply with the terms of the contract.

Legal Entity

A person who can enter a contract and therefore may be sued. A legal entity can be held liable for damages. It is important to note that a legal entity need not be an individual person. A corporation or other duly constituted organization is recognized as a person and, as such, is considered a legal entity.
References in periodicals archive ?
A commercial entity has a duty to protect someone from harm if the risk of harm is foreseeably and substantially higher than normal conditions.
Security precautions should also reflect the needs of potential plaintiffs with whom the commercial entity has a special relationship.

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