Sham Transaction
/ˈʃæm trænˌzækʃən/
Definitions
- (n.) A transaction or contract intended to deceive by disguising the true nature of the underlying agreement or to evade legal obligations.
The court declared the agreement a sham transaction and refused to enforce it.
Forms
- sham transactions
Related terms
See also
Commentary
A sham transaction is characterized by intent to mislead courts or third parties, often used in contexts involving fraud or attempts to circumvent law; courts may look beyond form to substance to assess validity.
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.