Correct option is B
The
Fiction Theory of legal personality was proposed by Friedrich Carl von Savigny, a prominent German jurist. According to this theory, legal personality is a construct or "fiction" created by law. Under this theory, entities like corporations are not real persons but are treated as such by the law for practical purposes. Savigny argued that only human beings have real personality, while legal persons such as corporations, states, or associations are artificial creations of the law. The Fiction Theory is contrasted with the Realist Theory, which considers that legal personalities like corporations have a real existence, and the Purpose Theory, which sees the legal personality of entities as existing to achieve certain purposes.
Information Booster:
1.
Fiction Theory: Proposes that legal persons (e.g., corporations) are fictitious entities created by law to function like persons in legal matters.
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Savigny’s Contribution: He emphasized that only natural persons (humans) have real legal personality; other entities are given personality by legal fiction.
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Legal Personality: The concept allows non-human entities like companies or governments to have rights and obligations in the eyes of the law.
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Application of Fiction Theory: Widely used in corporate law to attribute legal responsibilities to corporations as though they were individuals.
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Comparison with Realist Theory: Realist Theory opposes Fiction Theory by suggesting that legal entities are real persons with tangible rights and duties.
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Historical Importance: The Fiction Theory laid the foundation for understanding how the law treats corporations and other entities as "persons" in a legal context.
Additional Information:
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Realist Theory (a): This theory posits that legal personalities like corporations have real existence and not just fictional status.
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Bracket Theory (c): Also known as the Symbolist Theory, it suggests that legal persons exist only as a "bracket" or label, without real substance.
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Purpose Theory (d): Suggests that legal personality is attributed to entities only for fulfilling specific purposes, often seen in non-profit organizations and charities.
