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Property rights and contractual rights

Posted on:4/8/2006
Property rights are rights over things enforceable against other persons. By contrast, contractual rights, are rights enforceable against particular persons.



Property rights are rights over things enforceable against other persons. By contrast, contractual rights, are rights enforceable against particular persons. Property rights, however, may arise from a contract, so there is an overlap between the two systems of rights. In relation to the sale of land, for example, two sets of legal relationships exist alongside one another: the personal right to sue for damages on the contract, and the proprietary right exercisable over the thing.

A separate distinction is evident where rights granted are insufficiently substantial to confer on the non-owner a definable interest right in the thing. The clearest example of these rights is the license. In general, even if licenses are created by a binding contract, they do not give rise to proprietary interests.


 

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