It is legal fiction asserting that an individual or entity is presumed to know something, regardless of whether they actually do. This presumption arises when the information is publicly available or accessible through reasonable inquiry. A typical scenario involves recorded documents related to real property. For instance, the recording of a mortgage in the public records serves as a notification to the world that a lien exists on that property. Subsequent purchasers are therefore considered to have knowledge of the mortgage, even if they did not conduct a title search themselves.
The principle underpins the stability and reliability of property transactions and other legal matters. It ensures that individuals cannot claim ignorance of publicly accessible information to avoid legal obligations or consequences. Historically, this concept evolved to promote fairness and prevent fraud by establishing a standard of due diligence. This encouraged parties to actively seek out relevant information before entering into agreements or transactions.
