In this section, I look at:

• The classes of legal entity
• Humans
• Non-human contracting parties.

There are a number of classes of entity out there, some of which can contract and some of which cannot. Parties can be single humans, partnerships of humans, non-human corporations, non-corporate governments and non-human trusts. Also, each can operate under their own name or a business name. Each class of entity has its advantages and disadvantages. For purposes of this section, it is just important to distinguish between them.

Individual humans can for the most part enter deals by their natural civil rights. Some classes of humans cannot contract. People who are too young or too mental infirm are excused from much deal making. These classes are about who can contract. It is different from the question of should you contract with them. Some persons are unwise to contract with as they lack the required wealth or other forms of security. Some persons are unwise to deal with as they have a bad track record as can be discovered through a search of court orders and a credit listing. Know which human you are dealing with.

Humans can gather together, for a contract amongs themselves and present themselves as an entity called a partnership. There are terms in the agreement which may be important to know if you are dealing with them - they may or may not tell you these terms. Partnerships, for example, may only do business for a restricted purpose and your deal may not be within the sciope of their activities. Partnerships are now usually limited to professionals. Even they are moving towards the corporation as that form of entity limts personal liability of the participants.

It may appear that you are dealing with a business organization which is actually on investigation a human. Each province has a Business Names Act business name registry where Fred signs up for the right to operate as Freddy's Fine Fresh Fish. If Fred has not registered he should not be operating under that name as it confuses identity. Corporations can also register business names so XYZ Co. can operate as ABC Flowershops, DEF Wholesale Flowers and GHI Flowergrowing - three businesses, one corporate owner.

The corporation is a fiction of law. It exists under a statute so that people can do business without personal risk to their own property if the business goes wrong. Corporations have shareholders who own them, directors who lead them, managers who run them and employees who do the work. In the smallest of corporation these people may all be the one person. The corporations, however, lives a life of its own. If the shares are sold to another, the people other involved may stay the same but the ultimate owners are completely new.

Governments, like municipalities, may be corporations operating under their own set of rules or they may be sovereign entities like the Canadian provinces and Federal Government, ultimately answerable to know one but the court and the voter, each in certain circumstances. All government levels have particular rules for contracting, unique to each government body, which rules must be understood if you are to enter into bargains with them. Get ready to read up if you want to sell to the government.

Trusts are a separate form of entity which are neither human or corporate and which have an ancoent history, older than corporations and even older than the right for most humans to contract as we understand that right today. Trusts are created when a person either human or corporate, called the settlor of the trust, places property on the hands of another, called the trustee, for the benefit of a third person, the beneficiary. The trusteee can only do what the settlor has instructed him or her to do and the trustee must also abide by the local Trustees Act. The most common form is the estate of some who has passed away. It is run by the executor who can contract for the sale of items for cash to go into the estate for distribution to the deceased's family. Trusts can also be charities and have a continuing purpose.

To the average schmoe IT vendor, what is important in all this is when a guy calls to buy your widget, know whether that person is speaking for himself, his partners, the government he represents, the corporation he owns, the corporation he does not own but works for, or the trust he is running... and does he have authority to do what he is proposing to do. There is nothing more irritating to get down the road on a deal to find out the other side does not have the right to do what is proposed or that the real decision maker is not at the table with you. Especially irritating when you have started or even finished the job. There are protections in such circumstances provided by law, but the best protection is prevention...just like Grade 9 health class taught you.