Define: Legal Fiction

Legal fiction refers to a concept or presumption created by the law that is not necessarily true in fact but is assumed to be true for the purposes of legal reasoning or achieving specific legal outcomes. These fictions are often employed by courts or lawmakers to address practical or procedural issues, resolve ambiguities, or adapt the law to changing circumstances. Examples of legal fictions include the legal personhood of corporations, which are treated as separate entities from their owners or shareholders for liability and contractual purposes, and the presumption of innocence in criminal law, where defendants are presumed innocent until proven guilty. While legal fictions may depart from factual reality, they serve as useful tools for achieving legal objectives and promoting fairness, efficiency, and consistency in the administration of justice.

Legal fiction is the assumption that something may be true even though it may not be true, but its presumption is used to help come to an equitable resolution to a legal situation. A common example of legal fiction today is the notion of corporate “personhood.” Because it is impossible to sue the partners of a corporation directly, due to the notion of “incorporation” which has been created, the legal fiction of “corporate personhood” has been created so the corporation can be sued. Other situations which may involve legal fiction occur in adoptions and the handling of wills and estates.

Legal fiction is also used to avoid certain legal codes or provisions which the legislators do not want to change. For example, when a legislature has no legal power to sit beyond a certain time but they have more work to do they may “turn back” the official clock, rather than change the law. In court legal fiction may be used to facilitate the hearing of the case, although at times legal fiction is challenged if a party in the case believes it would result in a miscarriage of justice.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.