Legal Definitions - in posse

The Latin term in posse describes something that does not currently exist but has the potential to come into existence under specific future conditions. It refers to a state of potentiality, where something is capable of becoming real or actual once certain prerequisites are met or events unfold.

Here are some examples to illustrate this concept:

• Imagine a technology company that has patented a revolutionary new device but has not yet begun manufacturing it. The company enters into a contract to sell 10,000 units of this device to a distributor, with delivery scheduled for six months later. At the time the contract is signed, the physical devices themselves are in posse. They do not yet exist as manufactured products, but their existence is potential and will become actual once the manufacturing process begins and is completed, fulfilling the conditions of the contract.

• Consider a wealthy individual who establishes a will that includes a provision for a substantial inheritance to any grandchildren born to their children. At the time the will is drafted, the individual may not have any grandchildren, or even any children. The grandchildren, and their right to inherit, are in posse. They do not currently exist, but they have the potential to come into existence in the future, and if they do, they will then become actual beneficiaries under the will.

• A city government issues a bond to fund a new public park, with the understanding that the bondholders will be repaid from the future tax revenues generated by new businesses attracted to the area around the park. At the time the bond is issued, these specific future tax revenues are in posse. They do not yet exist, but they are potential and are expected to materialize as new businesses open and generate taxable income, thereby creating the funds necessary to repay the bondholders.