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Simple English definitions for legal terms
dummy
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A quick definition of dummy:
Term: DUMMY
Definition: A dummy is something that is not real, but is made to look like it is. For example, a dummy corporation is a fake company that is created to help achieve a legal goal. A dummy can also be a person who is involved in a transaction, but has no real interest in it. They might be there to help someone else achieve their goal. Another type of dummy is a person who buys property and holds it for someone else. This is called a straw man.
A more thorough explanation:
dummy, adj. Something that is not real or genuine, but is made to look like it is. For example, a "dummy corporation" is a fake company that is created to hide the true owners of a business.
dummy, n.
- A person or entity who is involved in a transaction, but has no real interest in it. They are just there to help achieve a legal goal. For example, a "dummy buyer" might be used in a real estate transaction to make it appear as though there are more interested buyers than there really are.
- A person or entity who holds legal title to property on behalf of someone else. This is also known as a "straw man." For example, a person might use a "dummy" to hold title to a car or house in order to protect their own assets.
Examples:
- A company creates a "dummy corporation" to hide the fact that they are really the ones behind a new business venture.
- A lawyer uses a "dummy plaintiff" in a lawsuit to make it appear as though there are more people affected by a particular issue than there really are.
- A person uses a "dummy" to hold title to a car in order to protect their own assets in case of an accident.
These examples illustrate how a "dummy" can be used to deceive or protect someone's interests. In each case, the "dummy" is not a real participant in the transaction or ownership, but is used to achieve a specific goal.