Legal Entity

Business, Legal & Accounting Glossary

Definition: Legal Entity


Legal Entity

Quick Summary of Legal Entity


An individual or organization which is legally permitted to enter into a contract, and be sued if it fails to meet its contractual obligations.




Examples of Legal Entity in a sentence


The legal entity had signed the document with their trial attorney who would be representing them throughout the lengthy case.

I created a separate legal entity for purposes of conducting business to provide another layer of insulation in the event of a dispute.

Since they were the legal entity on the deal, they were now the ones that were going to be sued because the deal fell through, and they lost business on it.


Related Phrases


statutory merger
tenancy in severalty
exemption trust


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/legal-entity/
Modern Language Association (MLA):
Legal Entity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/legal-entity/.
Chicago Manual of Style (CMS):
Legal Entity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/legal-entity/ (accessed: March 29, 2024).
American Psychological Association (APA):
Legal Entity. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/legal-entity/

Definition Sources


Definitions for Legal Entity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th November, 2021 | 0 Views.