De jure: Overview, definition and example
What does de jure mean?
De jure is a Latin term that means "by law" or "legally recognized." It’s used to describe situations, roles, or conditions that exist according to formal rules, regulations, or legal recognition, even if they don’t reflect what happens in practice.
For example, someone officially appointed as the CEO of a company is the de jure CEO, regardless of whether they actively perform the role.
Why is de jure important?
De jure is important because it establishes formal authority or status under the law. In legal or business contexts, identifying who or what is de jure can clarify responsibilities, rights, and obligations. It ensures there’s a clear, legally recognized framework for accountability, even if the reality (de facto) is different.
For businesses, understanding de jure status helps ensure compliance with laws and regulations and avoids disputes over who has authority or control.
Understanding de jure through an example
Imagine a company where the board formally appoints a director, and their name is registered with the government. Even if this director takes a backseat and lets someone else run operations, they are still the de jure director because they hold the title under the law.
In another case, a country has a de jure government officially recognized by its constitution, even if a different group has taken control of day-to-day governance. The de jure government still holds legal authority, even if it doesn’t have practical control.
An example of a de jure clause
Here’s how a clause addressing de jure status might look in a contract:
“The Parties agree that any de jure obligations or responsibilities established by applicable law shall be adhered to, regardless of operational practices.”
Conclusion
De jure refers to what is legally recognized, even if it doesn’t reflect practical realities. It highlights the formal side of roles, conditions, and authority, ensuring clarity in legal and business contexts.
Understanding de jure status helps businesses navigate compliance, assign accountability, and establish clear boundaries in agreements. It serves as the legal foundation for how things should operate, regardless of how they might function in practice.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.