Juridical person

Okay kiddo, so you know when you have a toy or a book, it belongs to you and is called your property, right? But have you heard of something called a "juridical person"?

Well, a juridical person is like a pretend person that we create on paper.

Imagine you and all your friends wanted to open a lemonade stand together. You could create a "juridical person" that would own the lemonade stand instead of you and your friends individually. This way, the lemonade stand would have its own "identity" separate from any of you.

That might not seem like a big deal, but it can be really helpful sometimes. For example, let's say someone spills hot lemonade on themselves and decides to sue. If the lemonade stand is a juridical person, it can be sued instead of any of you personally. This can protect all of you from having to pay a lot of money in damages.

So, basically, a juridical person is kind of like creating a make-believe person on paper to do business or own property in a way that protects real people involved from being held liable under the law.