Who are 'Foreign Sovereigns'?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

The concept of 'Foreign Sovereigns' refers to individuals or representatives of foreign states who are empowered to act on behalf of their countries in legal matters. This includes diplomats and officials who represent the interests and rights of their home countries abroad. It highlights the legal standing and authority these individuals have in international relations and legal transactions.

In this context, option A accurately describes foreign sovereigns as individuals representing foreign states with legal authority under international law. These representatives can engage in activities ranging from treaty negotiations to diplomatic immunity, enabling them to function effectively in international contexts.

The other options do not capture the essence of what constitutes 'Foreign Sovereigns.' For instance, the inability to pay debts pertains to insolvency and does not relate to the status of a sovereign or state. Individuals serving a prison sentence are not in a position to represent a state and thus do not fit the definition of foreign sovereigns. Similarly, a legal entity created by a Special Act refers to a different legal construct, such as a corporation or government body, rather than an individual acting on behalf of a state in foreign affairs.

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