Question

Explain the following terms in brief.
(a) Perpetual succession
(b) Common seal
(c) Artificial person

Answer 1

(a) Perpetual succession - Perpetual succession refers to continuous succession of a corporation. Perpetual succession is one of the remarkable features of a corporation. The very objective of a corporation is to have a perpetual succession, for there can not be a succession forever without incorporation.

(b) Common seal - Imprint of a firm's legal name, as an additional evidence that an agreement or a document was executed on behalf of the firm by its authorized agents or officers. Made of rubber or metal, company seals are required in some countries but are a mere formality in others. Also called corporate seal.

(c) Artificial person- Entity (such as a firm) other than a natural person (human being) created by law and recognized as a legal entity having distinct identity, legal personality, and duties and rights. Also called juristic person or legal person.