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Question

According to which theory, only human beings can have interests and rights and that a corporation is only a legal device or formula which will enable every complex jural relations to be understood more easily ?

The correct answer is
Bracket theory

Bracket Theory's View on Corporations

The question asks to identify the legal theory that defines a corporation solely as a legal device or formula, suggesting that only humans have interests and rights.

Understanding Bracket Theory

Bracket Theory, also known as the Concession Theory, explains corporate personality in a specific way:

  • It views a corporation not as a real entity but as a legal formula or construct.
  • This theory emphasizes that the corporation is created by law (like a concession) and is distinct from its members.
  • It posits that the corporation itself possesses no inherent interests or rights; these belong only to natural persons (humans).
  • The corporation serves as a convenient tool or 'bracket' to manage the complex legal relationships (jural relations) among individuals involved.

Connecting Theory to the Question

The description in the question directly matches the tenets of Bracket Theory:

  • "only human beings can have interests and rights" aligns with the theory's focus on natural persons.
  • "a corporation is only a legal device or formula" perfectly describes the theory's conceptualization of the corporate entity.
  • The purpose of simplifying "complex jural relations" is also a key aspect of this theory.

Therefore, Bracket Theory is the correct explanation for the concept described.

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Important Questions from Jurisprudence

  1. Which of the following is not a theory of legal personality?
  2. Match the LIST-I with LIST-II
    LIST-I ProfounderLIST-II Idea
    A. MimansaI. Law and Morals are same
    B. SmritiII. "Idea of Values" is the foundation
    C. Post Reformation EuropeIII. Law derives authority from State and not morals
    D. KorknovIV. There is distinction between obligatory and recommendatory rules

    Choose the correct answer from the options given below:
  3. Which of the following are correct about "legal theory"?
    A. It defines Law
    B. It analyses legal concepts
    C. It deals with mere theory and has no practical importance
    D. It highlights salient features of legal system
    Choose the correct answer from the options given below.
  4. "True subject matter of ownership in all cases is a right". Who gave this statement?
  5. Arrange the following in the historical order of development of Natural Law theories (ascending)
    A. Union with Divine is end of law
    B. Church is the law giver
    C. Development of idea of Rationalism
    D. Revival of Natural Law
    Choose the correct answer from the options given below:
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