Conduit
/ˈkɒn.dju.ɪt/
Definitions
- (n.) A means or channel through which something, such as funds or information, passes, often used in legal contexts to describe an intermediary in financial or legal transactions.
The trustee acted as a conduit for the transfer of assets to the beneficiaries.
- (n.) A person or entity who acts as an intermediary to funnel transactions or payments, potentially implicating issues of liability or transparency in legal proceedings.
The corporation was deemed a mere conduit for the illicit payments, exposing it to legal scrutiny.
Forms
- conduits
Related terms
See also
Commentary
In legal drafting, clarifying whether a conduit acts merely as a passive channel or has independent liability is crucial to determine legal responsibility.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.