Identification of a legal entity | ScriptaLegal
Personal Law Business Law Packages & Subscriptions
Français About us Create a free account Log in
Interactive legal guides Legal frequently asked questions Legal blog Videos
ONLINE LEGAL DOCUMENTS
Legal blog > Company > The identification of a legal entity

The identification of a legal entity

If a movable hypothec is registered under an alias, case law considers the error to be fatal.

«And it's time, oh poet, to reveal your name, your birth and your ancestry»
Exil VII

The identification of a legal entity raises certain questions, especially when it does business under an assumed name.

Thus, a legal entity formed under the Quebec Law with a numerical designation and also doing business under the name "Goe Foresterie" mortgages its movable assets in favor of a financial institution. At the time of publication, an error was made in taking the guarantees. Indeed, the constituent of the chattel mortgage was designated as "9076-3355 QUEBEC INC." and its assumed name, instead of its true name "9076-3335 QUEBEC INC.".

The company having gone bankrupt, the trustee refuses to recognize the validity of the mortgage. The financial institution, citing a clerical error, turns to the Court* and requests that the mortgage be recognized as valid.

Considering that such an error in a company number is not comparable to a spelling mistake in a natural person's name, any change in one of the digits of the company number necessarily creates a completely different set of numbers and, therefore, a completely different name. Even if the mortgage was also published under the constituent's assumed name, third parties cannot be expected to conduct multiple searches in the personal files of the movable register.

The Court deems the error to be fatal, as the registration had to be precise and disclose complete information through a simple search for third parties.

In daily life, one can use aliases, nicknames, or descriptive terms, but not when taking chattel mortgages. Let "pitou," "minou," and "ti-loup" take note of that.

*CA 200-09-003837-017, 2003-08-08

François Forget, notary and legal advisor as well as the entire Notaire-Direct team, are at your service to ensure the preparation of your legal documents and answer all your legal questions.
Purgatory is to marriage what hell is to divorce
Me François Forget - December 31, 2003
Divorce automatically revokes any bequests made to the former spouse.
Maternal love has its limits
Me François Forget - December 18, 2019
For most people, the holiday season is a time to come together and celebrate with family. For some, it's a joyous...
The assets owned by one of the spouses before the marriage
Me François Forget - August 23, 2005
When a spouse purchases a property using the proceeds from the sale of a property they owned before the marriage,...

This browser does not support this kind of file. Please download the file to view it: Download the file