Question

'Fiction Theory' is related to which of the following concepts?

• A. Ownership
• B. Liability
• C. Justice
• D. Legal personality

Hint:

Fiction Theory is central to understanding how legal entities like corporations are treated as legal 'persons,' enabling them to own property and enter into contracts.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question refers to 'Fiction Theory,' which is a concept used in legal theory. The theory revolves around the idea that certain entities, such as corporations or other legal subjects, are treated as 'persons' in the eyes of the law, despite not being natural persons. This theory is primarily associated with the concept of legal personality.
Step 2: Detailed Explanation of the Options:
- (A) Ownership: Ownership refers to the legal right to control and dispose of property, but it is not directly linked to Fiction Theory.
- (B) Liability: Liability involves legal responsibility for actions, but it is not directly connected to the concept of Fiction Theory.
- (C) Justice: Justice is a broader moral and philosophical concept, not specifically related to Fiction Theory.
- (D) Legal personality: This is the correct answer. Fiction Theory is closely related to legal personality, which grants legal entities (like corporations or artificial persons) the ability to participate in legal relations, despite not being human beings. Fiction Theory treats these entities as 'persons' under the law.
Step 3: Final Conclusion:
The correct answer is (D) Legal personality, as Fiction Theory is focused on granting legal personality to entities that are not natural persons.