Can a non legal entity sign and enter into a business agreement?

[Khashyar]

Can a non-legal entity (representing legal entities) enter into a business agreement?

What is the name of your state (only U.S. law)? California

Hello,

I was wondering if a non entity (a non legally registered entity), but one that in an agreement or contract refers to other legal entities by use of parentheses "()", can sign an agreement and enter into a contract?

For example:

"This agreement is between the Freedom Group (legal entity #1, individual's name #1, legal entity #2), and SECOND PARTY IN THE CONTRACT..."

If "Freedom Group" is NOT a legal or registered entity (but rather a name that was made up to represent the three legal entities), but the three groups referred to in the parentheses are legal parties, can "Freedom Group" enter into a contract if it has not registered as a business or legal entity?

I have a contract attorney friend who told me that in this case, that "Freedom Group" is not a legal entity, and cannot enter into an agreement, even though the three parties that informally compose the Freedom Group ARE legal entities.

My attorney friend also said that any contract or agreement that Freedom Group enters into would be invalid.

Would you agree with this?

Thank you very much for your thoughts and feedback.

-K

 

[HomeGuru]

What is the name of your state (only U.S. law)? California

Hello,

I was wondering if a non entity (a non legally registered entity), but one that in an agreement or contract refers to other legal entities by use of parentheses "()", can sign an agreement and enter into a contract?

For example:

"This agreement is between the Freedom Group (legal entity #1, individual's name #1, legal entity #2), and SECOND PARTY IN THE CONTRACT..."

If "Freedom Group" is NOT a legal or registered entity (but rather a name that was made up to represent the three legal entities), but the three groups referred to in the parentheses are legal parties, can "Freedom Group" enter into a contract if it has not registered as a business or legal entity?

I have a contract attorney friend who told me that in this case, that "Freedom Group" is not a legal entity, and cannot enter into an agreement, even though the three parties that informally compose the Freedom Group ARE legal entities.

My attorney friend also said that any contract or agreement that Freedom Group enters into would be invalid.

Would you agree with this?

Thank you very much for your thoughts and feedback.

-K

**A: is this a homework question? In any case, the answer is yes to your example.

 

[Khashyar]

Thank you for your thought and feedback, HomeGuru.

I know that it seems like a homework assignment but it actually is not.

So by "Yes," do you mean that you agree with my attorney friend that any agreement made by "Freedom Group" in this example would NOT be valid.

If I may ask another question...

I'm curious why in an agreement, you cannot specify (with parentheses) that one of the parties in an agreement, even though it is not a legally formed entity, is composed of parties X,Y and Z?

Using parentheses in the English language makes sense, but you are saying this is not valid legal grammar in creating a contract?

I know that a non-entity cannot enter into a contract.

So, you are saying that you cannot create a valid entity in an agreement simply by assigning other legal entities to it.

The entity must be made legal by registering it as a business or organization as you would any other business...

Thank you again for your thoughts and feedback.

Khashyar

 

[HomeGuru]

Thank you for your thought and feedback, HomeGuru.

I know that it seems like a homework assignment but it actually is not.

So by "Yes," do you mean that you agree with my attorney friend that any agreement made by "Freedom Group" in this example would NOT be valid.


**A: no, on the contrary.


#############
If I may ask another question...

I'm curious why in an agreement, you cannot specify (with parentheses) that one of the parties in an agreement, even though it is not a legally formed entity, is composed of parties X,Y and Z?

Using parentheses in the English language makes sense, but you are saying this is not valid legal grammar in creating a contract?

I know that a non-entity cannot enter into a contract.

So, you are saying that you cannot create a valid entity in an agreement simply by assigning other legal entities to it.

The entity must be made legal by registering it as a business or organization as you would any other business...

Thank you again for your thoughts and feedback.

Khashyar

**A: what? Confusing. The bottom line is based on the entity Freedom Group, how is it determiend that the entity is not legal? It is not a corporation or LLC but could be legal even if not registered.

 

[Khashyar]

**A: what? Confusing. The bottom line is based on the entity Freedom Group, how is it determiend that the entity is not legal? It is not a corporation or LLC but could be legal even if not registered.

My contract attorney friend tells me that for a business entity to be legal, that it must be registered in some form or another (i.e., as a DBA, Corporation, non-profit, etc.)

Do you mean that if the group was operating in some capacity, even if not registered, that it could be considered a legal entity?

Let's say that the "Freedom Group" was not officially registered in any city, county, or state, but that it was informally created by the 2 organizations and one individual to put on a convention.

The Freedom Group's plan was to register in some form, but it did not, but it did put on the convention.

After the convention, the group disbanded.

In what ways could an entity be a "legal" or valid entity, even though it is not registered or legally formed?

Thank you again for your thoughts,

Khashyar