Fraus legis
fraud on the law
Fraus legis is the evasion of the law by adopting a construction that is formally lawful but undermines the purpose or intent of the statute.
Fraus legis, also known as evasion of the law, refers to a situation in which a party performs an act that, strictly speaking, satisfies the statutory requirements, but which is in reality intended to circumvent the law. The court may treat such an act as invalid where it is shown that the course chosen serves merely to frustrate the statutory consequence that the legislature sought to achieve.
This doctrine is relevant across various areas of law, including contract law, corporate law and tax law. It prevents parties from undermining the protective or regulatory effect of legislation through artificial arrangements.
In practice, the court determines whether fraus legis has occurred by reference to the purpose of the statute and the intention of the parties. Where fraus legis is established, the legal act may be annulled or disregarded.
“The notary refused to pass the deed because the chosen structure exhibited clear indicia of fraus legis.”
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