In personam – A proceeding in which relief is sought against a specific person.
Meaning of Ipso Facto
Ipso Facto is a Latin term which literally means “by the mere fact” or “by that very fact”.
In legal context:
It refers to a situation where something occurs automatically or is true simply because a particular fact exists, without any additional action, proof, or reasoning.
Unlike per se, which refers to something being inherently wrong, ipso facto refers to a consequence that arises automatically from a certain fact or situation.
Key Points
Ipso facto is about automatic consequences.
It does not depend on interpretation, intent, or further evidence.
Commonly used in contract law, corporate law, insolvency law, and statutory provisions.
Case Laws on Ipso Facto
1. Official Assignee v. Official Receiver (UK, 1890)
Facts: Bankruptcy proceedings where certain rights and obligations arose automatically upon insolvency.
Observation: Certain legal consequences arise ipso facto—by the mere fact of bankruptcy, rights of creditors are affected.
2. Re Gulbenkian’s Settlement Trusts, [1970] AC 508 (UK)
Facts: Certain provisions of the trust automatically came into effect due to a defined event.
Observation: Rights and duties were triggered ipso facto, meaning merely because of the occurrence of the event.
3. Indian Contract Act, 1872 – Section 56 (Doctrine of Frustration)
Observation: When a contract becomes impossible to perform ipso facto, the parties are excused from performance by the very fact of impossibility.
Illustration: If a building contracted to be built is destroyed by a natural disaster, the contract is discharged ipso facto—without further action.
4. Companies Act, 2013 (India)
Observation: Certain provisions, like automatic vacation of directorship ipso facto upon disqualification or insolvency, come into effect by the mere fact of the disqualification.
Illustration
Contract Law:
If a contract becomes impossible to perform due to natural causes, it is discharged ipso facto—just because the impossibility exists, no further act is needed.
Corporate Law:
A director who becomes bankrupt ipso facto loses the right to act as director.
Statutory Law:
Certain tax or regulatory consequences may arise ipso facto when a condition in law is fulfilled.
Distinguishing Ipso Facto from Per Se
| Feature | Ipso Facto | Per Se |
|---|---|---|
| Meaning | Arises automatically by the mere fact | Wrong or unlawful inherently |
| Proof | Consequence follows automatically | Act itself is inherently wrong |
| Example | Contract discharged ipso facto due to impossibility | Selling counterfeit goods is illegal per se |
External Law References
Indian Contract Act, 1872 – Section 56 (Doctrine of Frustration)
Companies Act, 2013 – Automatic vacation of director post-disqualification (Sections 167, 164)
Bankruptcy Law – Rights of creditors arise automatically ipso facto upon bankruptcy
English Law – Re Gulbenkian’s Settlement Trusts, [1970] AC 508
✅ Conclusion:
Ipso facto means “by the mere fact.” In law, it signifies automatic legal consequences arising solely from the existence of a fact, without any additional act or proof. It ensures that certain legal effects take place immediately and inherently due to a fact or condition.
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