Legal Definitions - aliud simulatum, aliud actum

The Latin phrase aliud simulatum, aliud actum describes a situation where the outward appearance or stated purpose of an action or agreement is different from its true, underlying intention or effect. It highlights a discrepancy between what is pretended or shown and what is actually done or intended.

Here are some examples to illustrate this concept:

• Business Transaction for Asset Protection: Imagine a company facing significant financial difficulties and potential lawsuits. To protect its assets, the company publicly announces a "strategic sale" of a valuable piece of real estate to a newly formed subsidiary at a significantly undervalued price. The pretended act is a legitimate business restructuring to streamline operations. However, the actual act is an attempt to move assets out of the parent company's direct ownership, making them harder for future creditors or litigants to claim. This illustrates aliud simulatum, aliud actum because the stated reason for the sale differs from its true purpose of shielding assets.

• Sham Marriage for Immigration Benefits: Consider a situation where two individuals enter into a marriage. They publicly present themselves as a loving couple, going through all the traditional ceremonies and paperwork. The pretended act is a genuine marital union based on mutual affection and commitment. However, the actual act is a contractual arrangement where one party marries the other solely to help them obtain immigration status or other legal benefits, with no intention of establishing a real marital life together. Here, the outward appearance of marriage is a pretense for the underlying goal of securing legal residency, demonstrating aliud simulatum, aliud actum.

• Misleading Charitable Donation: A wealthy individual publicly donates a large sum of money to a charity, receiving significant media attention and praise for their philanthropy. The pretended act is a selfless act of generosity aimed at supporting a noble cause. However, the actual act might be primarily driven by a desire to gain a substantial tax deduction or to improve their public image after a scandal, rather than a genuine commitment to the charity's mission. The public display of altruism masks a more self-serving financial or reputational motive, perfectly embodying aliud simulatum, aliud actum.