Substance Over Form Doctrine

The Substance Over Form Doctrine is a legal principle that focuses on the actual meaning and intention behind a transaction or agreement, rather than just its official structure or presentation. In other words, it emphasizes the true nature of an arrangement, ensuring that the underlying reality is recognized, even if the superficial details suggest otherwise. This approach prevents parties from exploiting loopholes or misleading forms to evade legal obligations, ensuring fair treatment and adherence to the intent of the law in various contexts, such as contracts, tax matters, and financial reporting.