constructive notice

A person has constructive notice when they are presumed or deemed to know of a particular state of affairs although they do not have actual notice. Constructive notice is deemed when a person is expected to have made enquiries and failed to do so. A typical example is when a transaction or dealing with property appears on a public register and the person does not inspect the register prior to entering a transaction. In such circumstances, the person deemed to know the contents of the register.

Usage: The purchaser of the trade mark had constructive notice of the secured interest in the trade mark which took priority over the purchase.

Related Words: actual notice; imputed notice; statutory notice; Trade Mark Register.