Legal Definitions - IPD

IPD is an acronym for the Latin phrase IN PRAESENTIA DOMINORUM.

This legal term translates to "in the presence of the masters" or "in the presence of the lords." In modern legal contexts, it signifies that an action, statement, or agreement was made or occurred while the principal parties involved, or their authorized representatives, were physically present. It emphasizes direct observation, knowledge, and often, consent by those with authority or a direct interest in the matter.

Here are some examples to illustrate this concept:

• Contract Execution: Imagine two company CEOs meeting to finalize and sign a significant merger agreement. When both CEOs, representing their respective companies, are physically present at the table to witness each other sign the document, the contract is executed in praesentia dominorum. This means the principal decision-makers and parties to the agreement were directly present, lending undeniable authenticity and mutual awareness to the signing process.

• Property Inspection: Consider a landlord and a tenant conducting a final walk-through of a rental property before the tenant moves out. If they both inspect the premises together and agree on the condition of the property and any deductions from the security deposit while they are both physically present, their agreement is made in praesentia dominorum. This direct presence helps prevent future disputes about the property's condition or what was agreed upon, as both "masters" (the property owner and the tenant) had direct knowledge.

• Board Meeting Decisions: When a company's board of directors convenes a meeting to vote on a critical strategic initiative, such as a major acquisition or a change in company policy, and all directors are present (either physically or via a live video conference), the decision is made in praesentia dominorum. The "masters" of the company's direction are all present to deliberate, discuss, and cast their votes, ensuring that all key stakeholders have direct involvement and awareness of the decision-making process.