Close this search box.

Table of Contents

Prima Facie


In financial terms, “Prima Facie” is a Latin phrase that translates to “at first glance”. It refers to the initial impression or presumption that a fact is true unless disproved by some evidence. In business law, it is often used to denote that upon initial examination, sufficient evidence appears to exist to support a case.


The phonetics of the keyword “Prima Facie” is /ˈpriːmə ˈfeɪʃiː/

Key Takeaways

Sure, here you are:“`html

  1. Prima Facie is a Latin term that means “at first sight” or “on its face.” It’s used in legal proceedings to denote evidence that is sufficient to prove a certain fact unless it’s refuted or contradicted.
  2. In the legal system, a Prima Facie case is when the party presenting the case has provided enough evidence to support their claim. If the other party does not present evidence to the contrary, the court may assume the claim is true.
  3. The concept of Prima Facie is not only applicable in court cases. It’s also used broadly in philosophy, specifically in ethics, where a Prima Facie duty is an obligation that must be fulfilled unless it conflicts with an equal or more pressing duty.



Prima Facie, a Latin term which translates to “at first sight,” plays an important role in business/finance, as well as law, due to its implication on evidence and presumption. In finance and business, it would refer to the apparent legitimacy of a financial document, transaction, or a set of accounts at first glance. This term indicates that a financial operation appears to be valid or legal initially and will remain so unless proven otherwise. This influences the decision-making process since transactions that pass the ‘prima facie’ test are often proceeded with, saving time and resources. However, they still might be subject for further examination. Therefore, understanding the concept of ‘prima facie’ is crucial for business efficiency, risk management, and legal protection.


Prima facie, a Latin term that literally translates to “at first look,” plays a significant role in both legal and financial contexts by providing an initial level of proof or evidence that is sufficient to establish a claim, unless rebutted or disproven. In the finance or business sector, the concept is particularly central in contract law, fraud detection, and audit procedures. For instance, in auditing, if an auditor finds prima facie evidence of financial misconduct such as rampant discrepancies in the books of accounts, it necessitates a more comprehensive scrutiny to either confirm or dismiss the present suspicions.The implementation of prima facie accomplishes several key goals in business and finance. Primarily, it aids in the effective running of financial legal systems by preventing wastage of time on baseless claims. This means that only claims that meet the prima facie standard go on to more involved stages of assessment or trial. Moreover, it is an efficient risk management tool where potential risks and irregularities can be highlighted for further investigation or corrective action. Without the process of prima facie, businesses and financial systems would face significant challenges in managing their operations, which can ultimately impact their credibility, legal standing, and financial health.


1. Insurance Claims: In a car insurance claim process, the policyholder might present a prima facie case by providing evidence such as pictures of vehicle damage and a police report. This evidence would be a reasonable ground for the insurance company to believe that the other party did indeed cause the accident.2. Contract Agreements: In business contracts, a party may present a prima facie case alleging a breach of contract. For instance, if a vendor agreed to deliver 500 items but only delivered 450, the customer could present a prima facie case by showing the original agreement and the delivery receipt indicating the short shipment.3. Employment lawsuit: An employee alleging discrimination would establish a prima facie case by providing evidence that they were treated less favorably than others because of their race, sex, age, or any other protected characteristic. For example, the employee may present comparative evidence of how other employees outside the specified group were treated, or any pattern of cultural bias within the company.

Frequently Asked Questions(FAQ)

What does Prima Facie mean?

Prima facie is a Latin term meaning at first sight or on its face. In business, it refers to the initial assessment that, based on the first impression, is considered to be true unless proven otherwise.

How is Prima Facie used in law?

In law, a case is said to be prima facie if the evidence presented is sufficient for it to be proven true, unless there’s contradicting evidence presented.

How is Prima Facie used in finance and business?

In finance and business, prima facie often refers to the apparent validity of a theory, contract, statement, or financial document, based on initial observation or consideration.

Can Prima Facie be used to determine the credibility of a financial document?

Yes, prima facie can be used to initially determine the credibility or legitimacy of a financial document. However, further investigation may prove otherwise.

Is Prima Facie conclusive?

No, Prima Facie is not conclusive. It refers to the initial appearance of things, and it can be refuted by further evidence or analysis.

Is Prima Facie applicable only to legal, finance, and business sectors?

No, while commonly used in legal, finance, and business industries, Prima Facie is a term that can be used in any context to describe something that appears to be true upon the first observation.

Why is understanding Prima Facie important in business?

Understanding the concept of Prima Facie is important in business as it can help in initial analysis or appraisal of a deal, contract, statement, or document. It assists in decision-making but is not the sole factor to rely upon.

Related Finance Terms

  • Tort Law
  • Evidence
  • Presumption of Guilt
  • Burden of Proof
  • Legal Assumption

Sources for More Information

About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More