Sham Transaction Doctrine
/ˈʃæm trænˈzækʃən ˈdɒktrɪn/
Definitions
- (n.) A legal principle treating transactions created solely to disguise the true nature of a deal as void or ineffective.
The court applied the sham transaction doctrine to invalidate the contrived sale designed to evade taxes.
Forms
- sham transaction doctrine
Related terms
See also
Commentary
Use when a transaction is formally documented but intended to mislead or conceal the real intent; courts disregard such transactions to prevent abuse.
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.