SASI K.G.
The idea of obligation: The Gunman
situation: A orders B to hand over his money & threatens to shoot him if
he doesn’t comply.
According to Austin, it illustrates the notion of
obligation or duty in general. A must be the sovereign habitually obeyed
& the orders must be general prescribing courses of conduct & not
single actions. Here, the meaning of obligation lies in the fact that B,
if he obeyed, was obliged to hand over money.
B had an obligation or duty to hand
over money. But there is a difference between the assertion that someone
was obliged to do something & the assertion that he had an obligation to do
it. The first is often a psychological statement about the beliefs &
motives. Hart says that it can be said that B was obliged to hand over
his purse, but it can’t be said that he had an obligation to do that.
A person had an obligation, e.g., to
tell the truth or report for military service. The statement that he had
an obligation is quite independent of the question whether or not he in fact
reported for service; the statement that someone was obliged to do something
normally carried the implication that he actually did it.
01. Definition and Nature of Obligation
01. Obligations In the Law
Every legal system contains obligation-imposing
laws, but there is no decisive linguistic marker determining which these are.
The term “obligation” need not be used, nor its near-synonym, “duty.” One
rarely finds the imperative mood. The Canadian Criminal Code imposes an
obligation not to advocate genocide thus: “Everyone who advocates or promotes
genocide is guilty of an indictable offence and liable to imprisonment for a
term not exceeding five years.” The English Sale of Goods Act says that, “Where
the seller sells goods in the course of a business, there is an implied
condition that the goods supplied under the contract are of merchantable
quality.” That these laws create obligations follows from the way “offence” and
“implied condition” function in their respective areas of law, not from the
language in which they are expressed.
On the face of it, some laws have other functions.
A requirement that “a will must be signed” generally imposes no duty—not a duty
to make a will, and not even a duty to have it signed if you do—it sets
conditions in the absence of which the document simply does not count as a
valid will. Nonetheless, some philosophers, including Jeremy Bentham and Hans
Kelsen, argue that the content of every legal system can and should be
represented solely in terms of duty-imposing and duty-excepting laws. Bentham
asks, “What is it that every article of law has in common with the rest? It
commands and by doing so creates duties or, what is another word for the same thing, obligations” (Bentham 1970, 294). (For a related contemporary
view, see Harris 1979, 84–106.) They think that analyzing laws this way reveals
what legislators or subjects most need to know: under what conditions the
coercive power of law will ultimately be met. Others argue that even if such a
reduction were possible, it would be unwieldy, uninformative and unmotivated,
concealing as it does the different social functions that laws fulfil (Hart
1994: 26–49) and the different kinds of reasons for action that they create
(Raz 1990). Others still, despairing of any principled way of knowing what a
law is, have abandoned the problem entirely and tried to develop a theory of
law that bypasses it (Honoré 1977; Dworkin 1978: 71–78). At a minimum, it does
seem clear that whether or not all laws impose obligations, they can only be
fully understood through their relations to those that do. Thus, a
legal right is an interest that warrants holding others under an obligation to
protect it, a legal power is the ability to create or modify obligations, and
so forth.
What then are legal obligations? They are legal
requirements with which law's subjects are bound to conform. An obligatory act or omission is something the law renders
non-optional. Since people plainly can violate their legal obligations, “non-optional” does not mean that they
are physically compelled to perform, nor even that law leaves them without any
eligible alternative. On the contrary, people often calculate whether or not to
perform their legal duties. Could it be then that obligations are simply
weighty reasons to perform, even if sometimes neglected or outweighed? This
cannot be a sufficient condition: high courts have important reasons not to
reverse themselves too frequently, but no legal obligation to refrain. Nor is
it necessary: one has an obligation, but only a trivial reason, not to tread on
someone's lawn without his consent.
If their content does not account for the
stringency of obligations, what does? A historically important, though now
largely defunct, theory explained it in terms of penalty. Following Hobbes and
Bentham, the English jurist John Austin says that to have a legal obligation is
to be subject to a sovereign command to do or forbear, where a command requires
an expression of will together with an attached risk, however small, of
suffering an evil for non-compliance. “When I am talking directly of the chance of incurring the evil, or (changing
the expression) of the liability or obnoxiousness to the evil, I employ the
term duty, or the term obligation…” (Austin 1832, 18). Others conceived an indirect
connection between duty and sanction. Hans Kelsen holds that what is normally
counted as the content of a legal duty is in reality only part of a triggering
condition for the mandatory norm which commands or authorizes officials to
impose a sanction: “[A] norm: ‘You shall not murder’ is superfluous, if a norm
is valid: ‘He who murders ought to be punished’”(Kelsen 1967, 55). And thus,
“Legal obligation is not, or not immediately, the behavior that ought to be.
Only the coercive act, functioning as a sanction, ought to be” (Kelsen 1967,
119).
None of these versions of the sanction theory
survived H.L.A. Hart's criticisms (Hart 1994, 27–42; cf. Hacker 1973). First,
they misleadingly represent a range of disparate legal consequences—including
compensation and even invalidation—as if they all function as penalties.
Second, they render unintelligible many familiar references to duties in the
absence of sanctions, for example, the duty of the highest courts to apply the
law. Third, they offer an inadequate explanation of non-optionality. “You have
an obligation not to murder” cannot merely mean “If you murder you will be
punished,” for the law is not indifferent between people, on the one hand,
murdering and being jailed, and on the other hand not murdering at all. “The
right to disobey the law is not obtainable by the payment of a penalty or a
licence fee” (Francome
v. Mirror Group Newspapers Ltd. [1984] 2 All ER 408 at 412). Such dicta are commonplace and reflect
familiar judicial attitudes. Most important, the normal function of sanctions
in the law is to reinforce duties, not to constitute them. It is true that one reason people are interested in knowing their
legal duties is to avoid sanctions, but this is not the only reason nor is it,
contrary to what Oliver Wendell Holmes supposed, a theoretically primary one.
Subjects also want to be guided by their
duties—whether in order to fulfil them or deliberately to infringe them—and
officials invoke them as reasons for, and not merely
consequences of, their decisions.
Sensitivity to such matters led Hart to defend a rule-based theory. He says that while sanctions might mark
circumstances in which people are obliged to conform, they have an obligation only when subject to a practiced social rule
requiring an act or omission. The fact that subjects use it as a rule marks it
as normative. Three further features distinguish obligation-imposing rules:
they must be reinforced by serious or insistent pressure to conform; they must
be believed important to social life or to some valued aspect of it; and their
requirements may conflict with the interests and goals of the subject (Hart
1994, 85–88). This account of the nature of obligations is not an account of their validity. Hart does not say that a legal duty is binding
whenever there is a willingness to deploy serious pressure in its support, etc.
He holds that a duty is legally valid if it is part of the legal system (i.e.,
if it is certified as such by the tests for law in that system), and a legal
duty is morally valid only if there are sound moral reasons to comply with it.
But, at least in his early work, he offers the practice theory as an
explanation of duties generally—legal duties are the creatures of legal rules,
moral duties of moral rules and so on. (Hart later modified this view, see
1982, 255–68; and 1994, 256.)
The constitutive role of social pressure is
sometimes considered an Austinian blemish on Hart's theory, but there are in
any case more serious problems with it as a general account of obligations
(Dworkin 1978, 50–54; Raz 1990, 53–8). People readily speak of obligations when
they are well aware that there are no relevant social practices, as might a
lone vegetarian in a meat eating society. And Hart's practice conditions may be
satisfied in cases where there is no obligation but only generally applicable
reasons, as when victims are regularly urged to yield their wallets to a
mugger. At best, Hart's theory will apply only to a special class of
obligations in which the existence of a conventional practice is an essential
part of the reasons for conformity, though even here, the theory is open to doubt.
(See Dworkin 1978, 54–58; Green 1988, 88–121)
A third account is reason-based. On this view, what constitutes obligations is
neither the social resources with which they are enforced, nor the practices in
which they may be expressed, but the kind of reasons for action that they
offer. Legal obligations are content-independent reasons that are both
categorical and pre-emptive in force. The mark of their content-independence is
that their force does not depend on the nature or merits of the action they require:
in most cases, law can impose an obligation to do X or to refrain from doing X (Hart 1958; 1982, 254–55; but cf. Markwick 2000).
That they are pre-emptive means that they require the subject to set aside his
own view of the merits and comply nonetheless. That they are categorical means
that they do not condition their claims on the subject's own goals or
interests.
This view is foreshadowed in both Hobbes and Locke,
but its most influential contemporary version is due to Joseph Raz (1977; 1990,
35–84). He argues that obligations are categorical reasons for action that are
also protected by exclusionary reasons not to act on some of the competing
reasons to the contrary. Obligations exclude some contrary reasons—typically at least reasons of convenience and ordinary
preference—but they do not normally exclude all: an exclusionary reason is not
necessarily a conclusive reason. The stringency of an obligation is thus a
consequence not of its weight or practice features, but of the fact that it
supports the required action by special normative means, insulating it from the
general competition of reasons. Or at any rate this is what obligations do when
they have the force the claim, i.e., when they are binding. The theory does not
assume that all legal obligations actually are binding from the moral point of
view, but it does suppose that the legal system puts them forth as if they
were—a consequence that some have doubted. (Hart 1982, 263–67; Himma 2001,
284–97) And while this account is invulnerable to the objections to
sanction-based and practice-based theories, it does need to make good the
general idea of an ‘exclusionary reason’, and some philosophers have expressed
doubts on that score also (Perry 1989, Regan 1987): is it ever reasonable to
exclude entirely from consideration an otherwise valid reason? The
account has, nonetheless, been adopted by legal philosophers with otherwise
starkly contrasting views of the nature of law. (Compare, e.g., Finnis 1979,
231–59 and Marmor 2001).
02. Authority, Obligation, and Legitimacy
A competitive market is not a legal system, even
though people adjust their behaviour in response to relative prices and the
whole constitutes a form of social order. Neither was the system of mutual
nuclear deterrence, though it guided behaviour and generated norms that
regulated the Cold War. Many philosophers and social scientists agree that a
social order is a legal system only if it has effective authority. An effective (or de facto) authority may not be justified, but it does stand
in a special relation to justified (de jure) authority. Justified authority is what effective
authorities claim, or what they are generally recognized to have.
What is legal authority, and how is it related to
obligations? It is a kind of practical authority, i.e. authority over action.
On one influential view, “To claim authority is to claim the right to be
obeyed” (Wolff 1970, 5). There are, of course, authorities that make no such
claim. Theoretical authorities, i.e., experts, are not characterized by claims
to obedience—they need not even claim a right to be believed. And there are
weaker forms of practical authority. To give someone authority to use your car
is merely to permit him. But political authority, of which legal authority is
one species, is normally seen as a right to rule, with a correlative duty to
obey. On this account law claims the right to obedience wherever it sets out
obligations. And to obey is not merely to comply with the law; it is to be guided by it. Max Weber says it is “as if the ruled had made
the content of the command the maxim of their conduct for its very own sake”
(Weber 1963, 946). Or, as Robert Paul Wolff somewhat more perspicuously puts
it: “Obedience is not a matter of doing what someone tells you to do. It is a
matter of doing what he tells you to do because he tells you to do it” (Wolff 1970, 9). This is not to say that one
obeys only in treating the authority's say-so as an indefeasible reason for
action; but one must treat as a binding content-independent reason. The question
whether there is an obligation of obedience to law is a matter of whether we
should act from the legal point of view and obey the law as it claims to be
obeyed (Raz 1979, 233–49).
It is an interesting feature of this account that
it supposes that one can tell what the authority requires independent of
whether the requirement is justified on its merits. Richard Friedman argues:
“[I]f there is no way of telling whether an utterance is authoritative, except
by evaluating its contents to see whether it deserves to be accepted in its own
right, then the distinction between an authoritative utterance and advice or
rational persuasion will have collapsed” (Friedman 1973, 132). An idea of this
sort is developed by Raz into one of the leading arguments for the “sources
thesis”, the idea that an adequate test for the existence and content of law
must be based only on social facts, and not on moral arguments. (See the entry
on legal positivism.) Authority's subjects “can benefit by its
decisions only if they can establish their existence and content in ways which
do not depend on raising the very same issues which the authority is there to
settle” (Raz 1994, 219). If law aims to settle disputes about moral issues,
then law must be identifiable without resolving these same disputes. The law is
therefore exhausted by its sources (such as
legislative enactments, judicial decisions, and customs, together with local
conventions of interpretation). This kind of argument has been generalized (see
Shapiro 1998), but also subjected to criticism. It is uncertain what sort of
constraint is posed by the idea that it should not involve “the very same
issues”—perhaps if morality is a necessary condition only there could be moral
tests for authority that leave the relevant dependent reasons untouched
(Coleman 2001, 126–7). And while law does indeed serve as a scheme for guiding
and appraising behaviour, it may also have other functions, such as educating
its subjects about right and wrong, and this may be ill-served the attitude
that the rules are to be obeyed in part because they are the rules (Waluchow
1994).
The obligation-correlative view of authority is not
universally accepted. Some argue that legal authority involves no claim right,
but only a set of liberties: to decide certain questions for a society and to
enforce their decisions. (Soper 2002, 85 ff; cf. Ladenson 1980; Greenawalt
1987; 47–61; and Edmundson 1998, 7–70). The liberty conception must answer two
questions. First, is it not a feature of a right to decide that it requires
subjects to refrain from acting on competing decisions? If the law says that
abortion is permissible and the Church says that it is not, what does the
denial of the Church's right to decide amount to if not that public policy
should be structured by the former decision and not the latter, even if the
latter is correct? Second, does the right to enforce include a duty of subjects
to pay the penalty when required? If it does, then this is only a truncated
version of the obligation-correlative theory—one that holds that punitive and
remedial obligations, but not primary obligations, are binding. If not, it is
starkly at variance with the actual views of legal officials, who do not think
that subjects are at liberty to evade penalties if they can.
This reaches a methodological issue in the
philosophy of law. Some consider that the character of law's authority is a
matter for descriptive analysis fixed by semantic and logical constraints of
official language and traditions of argument. Others maintain that such
analysis is impossible or indeterminate, and that we are therefore driven to
normative arguments about what legal authority should be (see Soper 2002;
Finnis 1979, 12–15). Crudely put, they think that we should understand law to
claim only the sort of authority it would be justifiable for law to have. Such
is the motivation for Friedrich Hayek's suggestion that ‘The ideal type of law
… provides merely additional information to be taken into account in the
decision of the actor’ (Hayek 1960, 150). Hayek favours the free market, and
concludes that the nature of legal authority should be understood analogically.
The most radical position of this sort is Ronald Dworkin's. He prefers what he
calls a “more relaxed” understanding of legal authority (Dworkin 1986: 429).
Others have argued that the pre-emptive notion of authority is unsatisfactory
because it is too rigid (e.g., Perry 1989). Dworkin's objection runs much
deeper. His position is not that law communicates only a weaker form of
guidance; it is that law is not to be understood as trying to communicate
anything at all. A subject considering his legal duties is not listening to the
law; he is engaged in “a conversation with oneself,” and is “trying to discover
his own intention in maintaining and participating in that practice” (Dworkin
1986, 58). On this view there is no fact of the matter about what law claims
that is independent of what each does well to regard it as claiming.
However we resolve the methodological question,
there are two parallel normative questions:
The problem of
obligation: What if anything
justifies the duty to obey the law, and how far does that obedience properly
extend?
The problem of
legitimacy: What if anything
justifies the coercive power of law, and how far may that power properly
extend?
What is the relationship between these? Some
maintain that obligation comes first: “[T]hough obligation is not a sufficient
condition for coercion, it is close to a necessary one. A state may have good
grounds in some special circumstances for coercing those who have no duty to
obey. But no general policy of upholding the law with steel could be justified
if the law were not, in general, a source of genuine obligations” (Dworkin
1986, 191). The idea is that merely having justice on one's side is an
inadequate ground for coercing others; one also needs a special title flowing
from the moral status of the law. (Contrast, for example, Locke's view that
everyone has an “executive power of the law of nature,” at least outside
political society (§ 13).)
Others contend that this gets the relationship
backwards. First, it is doubtful whether one could have an obligation to obey
an illegitimate regime. As Rawls says, “Acquiescence in, or even consent to,
clearly unjust institutions does not give rise to obligations” (Rawls 1971,
343; but cf. Simmons 1979, 78–79). If so, at least some conditions of
legitimacy precede an obligation of obedience. Second, there are substantive
reasons for thinking we would not have obligations to obey if the law were not already justified in upholding its requirements “with
steel.” A legal system that could not justifiably coerce could not assure the
law-abiding that the recalcitrant will not take them for suckers. Without being
able to solve this assurance problem it would be unjust to impose obligations
on them, and unjust to demand their obedience. Underlying this suggestion is
that idea that familiar idea that effectiveness is a necessary—but certainly
not sufficient—condition for justified authority. (See Kelsen 1967, 46–50; cf.
Finnis 1979, 250)
It may affirm our confidence in the
obligation-correlative view to know that from earliest times philosophical
reflection on political authority has focussed on the obligation to obey. The
passive obligation of obedience is certainly not all we owe the law (Parekh
1993, 243; Green 2003, 543–47) but many have taken it to be law's minimum
demand. This gives rise to a puzzle. As Wolff puts it: “If the individual
retains his autonomy by reserving to himself in each instance the final
decision whether to co-operate, he thereby denies the authority of the state;
if, on the other hand, he submits to the state and accepts is claim to
authority then … he loses his autonomy” (Wolff 1970, 9). Wolff resolves the
dilemma in favour of autonomy, and on that basis defends anarchism.
Some of Wolff's worries flow from the “surrender of
judgment” itself—how can it ever be rational to act against reason as one sees
it? Others flow from the fact that it is a surrender to the law. On the first point, it is relevant to notice that
promises and contracts also involve surrender of judgment and a kind of
deference to others (see Soper 2002, 103–39), yet a rational anarchist needs
such voluntary commitments to substitute for authoritative ordering. A
principled objection to every surrender of judgment is thus self-defeating.
Moreover, there seem to be cases in which by surrendering judgment on some
matters one can secure more time and resources for reflection and decision on
things that are more important, or with respect to which one has greater
capacity for self-direction. A partial surrender of judgment may therefore
enhance the agent's autonomy overall.
This suggests that Wolff's concern is better
understood as skepticism about whether it is justifiable to surrender one's
judgment wholesale to the law. Some philosophers have queried the
intelligibility of this doubt; they say that it is of the nature of law that there is an obligation to obey it, at
least in its central case (Fuller 1958, 100; Finnis 1979, 14–15). Some go so
far as to conclude that it is therefore absurd to ask for any ground of the duty to obey the law: law is that which is
to be obeyed (McPherson 1967, 64). We need a way into this circle, and the best
entrance is in specifying the nature of law in a way compatible with various
theories of its nature. Three features are especially important (drawing on
Hart 1994, 193–200; Raz 1990, 149–54; and Lyons 1984, 66–68.) First, law is institutionalized: nothing is law that is not connected with the
activities of institutions such as legislatures, courts, administrators,
police, etc. Second, legal systems have a wide scope. Law not limited to the affairs of small
face-to-face groups such as families or clans, nor does it only attend to a
restricted domain of life such as baseball. Law governs open-ended domains of
large, loosely structured groups of strangers and it regulates their most
urgent interests: life, liberty, property, kinship, etc. But although law
necessarily deals with moral matters, it does not necessarily do so well, and
this is its third central feature: law is morally fallible. This is acknowledged by both positivists and
natural lawyers, whose slogan “an unjust law is not a law” was never intended
to assert the infallibility of law.
The question of political obligation, then, turns
on whether there is are moral reasons to obey the mandatory requirements of a
wide-ranging, morally fallible, institutionalized authority. This obligation
purports to be comprehensive in that it covers all legal obligations and
everyone whose compliance the law requires. It is not assumed to bind come what
may, though it is to be one genuine obligation among others. Some philosophers
also consider that it should bind people particularly to their own states,
i.e., the states of which they are residents or citizens, and that an argument
that could not show that one had more stringent duties to obey one's own
country than a similarly just foreign one would be in that measure deficient
(Simmons 1979, 31–35; Green 1988, 227–28). Finally, it is common ground the
obligation exists only when a threshold condition of justice is met.
02. Sources of Obligation
Obligations
arising out of the will of the parties are called voluntary, and those
imposed by operation of law are called involuntary. Sometimes these are
called conventional and obediential. The events giving rise to obligations may
be further distinguished into specified categories.
01. Voluntary
1. unilateral promise (pollicitatio) -
undertaking by promisor only to perform, not requiring the agreement of the
beneficiary
02. contract
A contract can
be broadly defined as an agreement that is enforceable at law. Gaius classified contracts into four categories
which are: contracts consensu,
verbal contracts, contracts re,
and contracts litteris.
But this classification cannot cover all the contracts, such as pacts and
innominate contracts; thus, it is no longer used.
03. quasi-contract
i.
negotiorum gestio - duty to repay someone (gestor) who has managed
the affairs or property of another who was unable
ii.
solutio indebiti - undue payment or delivery of a thing to another,
who is then obligated to return the thing
Quasi-contract
is one of the four categories of obligation in Justinian's classification. The
main cases are negotiorum gestio (conducting of another person's affairs
without their authorisation), unjust enrichment, and solutio indebiti.
04. Quasi-delicts
The designation
comprised a group of actions of no obvious similarity, classified by Justinian
as analogous to delictual obligations. It includes res suspensae, things
poured or thrown, shippers/innkeepers/stablekeepers, and erring judges.
05.. Involuntary
3. Contracts
A contract can
be broadly defined as an agreement that is enforceable at law. Gaius
classified contracts into four categories which are: contracts consensu, verbal contracts, contracts re, and contracts litteris. But this classification cannot cover
all the contracts, such as pacts and innominate contracts; thus, it is no
longer used.
Quasi-contracts
Quasi-contract
is one of the four categories of obligation in Justinian's classification. The
main cases are negotiorum gestio (conducting of another person's affairs
without their authorisation), unjust enrichment, and solutio indebiti.
Quasi-delicts
The designation
comprised a group of actions of no obvious similarity, classified by Justinian
as analogous to delictual obligations. It includes res suspensae, things
poured or thrown, shippers/innkeepers/stablekeepers, and erring judges.
06. Subject matter
Obligations are
classified according to the nature of the performance (prestation):
specific real obligation - delivery of a
determinate thing when it is particularly designated or physically separated
from all others of the same class
generic real obligation - delivery of a generic
thing
personal obligations - undertakings either to do or
not do all kinds of work or service
positive personal obligation - performance
negative personal obligation - forbearance
03. Kinds of Obligation
Civil or perfect obligation. It is an obligation whose sanction is law. Natural
Obligation or naturalis obligatio is one enforceable by law but nevertheless
binding on the obligor by dictate of his conscience and the basic postulates of
natural law, justice and equity. Moral Obligation is a duty imposed by ethical
or religious belief.
Real Obligation. The obligation to give Personal
Obligation . The obligation to do or not to do.
Obliged -
Unilateral Obligation . Is one where
only one party is bound. Only one party undertakes a performance. Bilateral Obligation . Is one where both
parties are bound, as in the contract of sale.
Positive Obligation. Is an obligation to give and to do, the essence is affirmative action Negative Obligation . Is an obligation not to
give or not to do, the essence is inaction or non-action.
Primary Obligation. The principal object of the contract. Secondary Obligation . One which is contracted
and is to be performed in case the primary obligation cannot be performed.
Principal Obligation. One which arises from the principal object of the
engagement of the contracting parties. Accessory Obligation . One which depends upon
or peripheral or collateral to the principal
07. Kinds of Obligations Under the Civil Code
Pure and Conditional Obligation.
Obligation with a Period
Alternative Obligation
Joint and Solidary Obligation
Divisible and Indivisible Obligation
Obligation with a Penal Clause
Pure Obligation
Every obligation whose performance does not depend
upon a future or uncertain event, or a past event unknown to the parties, is
demandable at once and is called a pure obligation.
08. Conditional Obligation
Conditional obligation is one the fulfillment of which
is dependent upon the happening of an event.THE CONDITION MAY BE;
1.
Suspensive or
Condition Precedent – wherein the
happening of the condition gives rise to the obligation. The obligation is not
to take effect until the event happens, it is a suspensive condition Resolutory Condition or Condition Subsequent –
wherein the happening of the condition extinguishes the obligation, obligation
with resolutory condition take effect at once, but terminate upon the happening
of the event. Potestative – wherein the condition depends upon the will of the
debtor. (Invalid Condition, Art. 1182) Casual – wherein the condition depends upon
chance, or on the will of the third person Impossible Conditions – those
contrary to good customs or public policy and those prohibited by law, shall
annul the obligation which depends upon them.
2.
Obligations
with a Period or Term Obligations for
whose fulfillment a day certain has been fixed is called an obligation with a
period or term and is demandable only when that day comes.In obligation with a
period , the general rule is that it is presumed that the period has been
established for the benefit of both creditor and debtor
3.
In the following
instances, the court may fix the period. If the obligation does not fix a
period but from its nature and circumstances it can be inferred that a period
was intended When it depends on the will
of the debtor When the debtor binds
himself to pay when his means will permit him to do so.
4.
Alternative
Obligation An alternative obligation
is one where out of two or more prestations which may be given or performed, only
one is due and the complete performance of one of them extinguishes the
obligation. The Obligee or creditor cannot be compelled to receive part of one
and part of the other undertaking or prestation.
5.
As a general
rule, the right to choose the alternative belongs to the debtor. However, there
are four limitations to this right of choice of alternative by the debtor. When
the right of choice of the alternative is expressly granted to the creditor by
mutual agreement of the parties. The debtor has no right to choose those
prestations which are impossible, unlawful or which could not have been the
object of the obligation. The choice cannot produce any legal effect until it
has been communicated to the other party. The debtor loses the right of choice among the
prestations whereby he is alternatively bound when only one alternative is left
that is practicable of performance
6.
Facultative
Obligation When only one prestation has been has been
agreed upon, but the obligor may render another in substitution, the obligation
is facultative
7.
Joint and
Solidary Obligation A joint
obligation may be defined as an obligation where there is a concurrence of
several creditors or several debtors, by virtue which each of the creditors has
a right to demand, while each of the debtors is bound to render the compliance
with his proportionate part of the prestation which constitute the object of
obligation.
8.
The Right of
the Creditors in Solidary Obligation The
right to demand entire payment of the debt or the entire compliance with the
prestation from any one of the debtors. If the debt has not been fully collected from
one debtor, the creditor has the right to demand payment from the remaining
debtors. The right to file an action for compliance with the obligation against
one, some all of the debtors simultaneously. The right to receive payment or
compliance with the entire prestation, from one, some or all of the debtors.
The right to do whatever may be useful to the other creditors. The right to
assign his rights with the consent of the other creditors. The right to make a
novation, compensation, confusion or remission of the debt.
9.
Obligations of
a Solidary Debtor To pay the entire
debt or fulfill the entire prestation when so demanded by creditors. Payment
made by one of the solidary debtors extinguishes the obligation. If two or more
solidary debtors offer to pay, the creditor may choose which offer to accept.
To pay his corresponding share in the debt in case one of the solidary debtors
made full payment of the obligation, with the interest for the payment already
made. If payment is made before the debt is due, no interest for the
intervening period may be demanded. To pay for the share of the insolvent
co-debtor in proportion to the debt of each when one of the solidary debtors
cannot, because of his insolvency, reimburse his share to the debtor paying the
obligation. If the solidary debtor makes
payment after the obligation has prescribed or become illegal, he losses the
right to reimbursement from his co debtors.
10.
Divisible and
Indivisible Obligation An obligation
to give definite things and those which are not susceptible of partial
performance is deemed an indivisible obligation. When the obligation gives rise
for its object the execution of certain number of days work, the accomplishment
of work by metrical units, or analogous things which by their nature are
susceptible of partial performance, such obligation is called divisible
obligation.
11.
Obligation
with a Penal Clause An obligation
with a penalty is one where if the obligation is not complied with, the penalty
imposed shall substitute for damages and the payment of interests, unless
otherwise stipulated
12.
A penalty imposed
for the breach of contract shall be enforced if the agreement is violated,
whatever the obligee has suffered from damages or not, inasmuch as one of the
primary purposes in fixing a penalty is to avoid damage. Proof of actual
damages suffered by the creditor is not necessary in order to demand penalty.
13.
As a general rule
is that the penalty takes place of indemnity for damages and for the payment of
interest, except: when there is express
agreement to the effect that damages or interest may still be recovered,
despite the presence of the penalty clause when the debtor refuses to pay the
penalty imposed in the obligation.
04. Meaning of Property
Property has a
very wider meaning in its real sense. It not only includes money and other
tangible things of value, but also includes any intangible right considered as
a source or element of income or wealth. The right and interest which a man has
in lands and chattels to the exclusion of others. It is the right to enjoy and
to dispose of certain things in the most absolute manner as he pleases,
provided he makes no use of them prohibited by law.
The sea, the
air, and the like, cannot be appropriated; every one may enjoy them, but no one
has any exclusive right in them. When things are fully our own, or when all
others are excluded from meddling with them, or from interfering about them, it
is plain that no person besides the proprietor, who has this exclusive right,
can have any claim either to use them, or to hinder him from disposing of them
as he pleases; so that property, considered as an exclusive right to things,
contains not only a right to use those things, but a right to dispose of them,
either by exchanging them for other things, or by giving them away to any other
person, without any consideration, or even throwing them away.
Basically
Property is divided into real property, and personal property. Property is also
divided, into absolute and qualified, when it consists of goods and chattels.
Absolute
property is that which is our own, without any qualification whatever; as when
a man is the owner of a watch, a book, or other inanimate thing: or of a horse,
a sheep, or other animal, which never had its natural liberty in a wild state.
Qualified
property consists in the right which men have over wild animals which they have
reduced to their own possession, and which are kept subject to their power; as
a deer, a buffalo, and the like, which are his own while he has possession of
them, but as soon as his possession is lost, his property is gone, unless the
animals, go animo revertendi.
Property is
again divided into corporeal and incorporeal. The former comprehends such
property as is perceptible to the senses, as lands, houses, goods, merchandise
and the like; the latter consists in legal rights, as chooses in action,
easements, and the like.
It is proper to
observe that in some cases, the moment that the owner loses his possession, he
also loses his property or right in the thing: animals ferae naturae, as
mentioned above, belong to the owner only while he retains the possession of
them. But, in general,' the loss of possession does not impair the right of
property, for the owner may recover it within a certain time allowed by law.
In general
sense, property is any physical or virtual entity that is owned by an
individual or jointly by a group of individuals. An owner of the property has
the right. Human life is not possible without property. It has economic,
socio-political, sometimes religious and legal implications. It is the legal
domain, which institutes the idea of ownership. The basic postulate of the idea
is the exclusive control of an individual over some ‘thing’. Here the most
important aspect of the concept of ownership and property is the word ‘thing’,
on which a person has control for use. To consume, sell, rent, mortgage,
transfer and exchange his property. Property is any physical or intangible
entity that is owned by a person or jointly by a group of people. Depending on
the nature of the property, an owner of property has the right to consume,
sell, rent, mortgage, transfer, exchange or destroy their property, and/or to
exclude others from doing these things. [1]
There are
some Traditional principles related to property rights which includes include:
1. Control over
the use of the property.
2. Right to
take any benefit from the property.
3. Right to
transfer or sell the property.
4. Right to
exclude others from the property.
01. Definition of property
There are
different definitions are given in different act as per there uses and needs.
But in the most important act which exclusively talks about the property and
rights related to property transfer of property act 1882 has no definite
definition of the term property. But it is defined in some other act as per
their use and need. Those definitions are as follows:
Section 2(c) of
the Benami Transactions (Prohibition) Act, 1988 defines property as:
“Property”
means property of any kind, whether movable or immovable, tangible or
intangible, and includes any right or interest in such property.
Section 2 (11)
of the Sale of Good Act, 1930 defines property as:
“Property”
means the general property in goods, and not merely a special property.
Theories behind
concept of property:-
There are many
theories which have been evolved for the purpose of understanding the concept
of property properly.
Those theories
are as follows:
1. Historical
Theory of Property:
2. Labour
Theory (Spencer):
3.
Psychological Theory (Bentham):
4. Functional
Theory (Jenks, Laski):
5.
Philosophical Theories–
(i) Property as
a means to Ethnical Ends
(ii) Property
as an End in itself
Historical
Theory of Property
According to the
Historical theory, the concept of private property had grown out of collective
group or joint property. In the words of Henry Maine, “Private property was
chiefly formed by the gradual disentanglement of the separate rights of
individual from the blended rights of the community.
Earlier property did not belong to individuals, not even to isolated families, but the larger societies composed on patriarchal mode. Later with the disintegration of family- individual rights came into being.
Roscoe Pound also pointed out that the earliest form of property was group property. It was later on that families were partitioned and individual property came into being.
Earlier property did not belong to individuals, not even to isolated families, but the larger societies composed on patriarchal mode. Later with the disintegration of family- individual rights came into being.
Roscoe Pound also pointed out that the earliest form of property was group property. It was later on that families were partitioned and individual property came into being.
Labour
Theory (Spencer)
The theory is
also known as ‘positive theory’. This theory insists on the fact that labour of
the individual is a foundation of property. This theory says that, a thing is
the property of a person, who produces it or brings it into existence. The main
supporter of this theory is Spencer, who developed it on the principle of equal
freedom. He says that property is the result of individual labour. Therefore,
no person has a moral right to property which he has not acquired by his
personal effort.
Psychological
Theory (Bentham)
According to
this theory, property came into existence on account of acquisitive instinct of
man. Every individual desires to own things and that brings into being
property.
According to
Bentham, Property is altogether a conception of mind. It is nothing more than
an expectation to derive certain advantages from the object according to one’s
capacity.
Roscoe Pound also supports Bentham and observed that the sole basis of conception of property is the acquisitive instinct of individual which motivates him to assert his claim over objects in his possession and control.
Roscoe Pound also supports Bentham and observed that the sole basis of conception of property is the acquisitive instinct of individual which motivates him to assert his claim over objects in his possession and control.
Functional
Theory (Jenks, Laski)
The theory is
sometimes also known as ‘sociological theory of property’. It implies that the
concept of property should not only be confined to private rights but it should
be considered as a social institution securing maximum interests of society.
Property is situated in the society, has to be used in the society.
According to
Jenks, no one can be allowed an unrestricted use of his property, to the
detriment to others. He said that the use of property should conform to the
rules of reason and welfare of the community.
According to
Laski, Property is a social fact like any other, and it is the character of
social facts to alter. Property has further assumed varied aspects and is
capable to further change with the changing norms of society.
02. Property is the creation of the State
The origin of
property is to be traced back to the origin of law and the state. Jenks
observed that property and law were born together and would die together. It
means that property came into existence when the state framed laws. Property
was nowhere before law.
According to
Rousseau, “It was to convert possession into property and usurpation into a
right that law and state were founded”.
The first who
enclosed a piece of land and said- ‘this is mine’- he was the founder of real
society.
He insisted on
the fact that property is nothing but a systematic expression of degrees and
forms of control, use and enjoyment of things by persons that are recognized
and protected by law. Thus the property was the creation of the state.
Philosophical
Theories –
Property as a
means to Ethnical Ends
In the opinion
of Aristotle, Hegel and Green, Property has never been treated as an end, but
always as a means to some other end. According to Aristotle, it may be a means
to the end of good life of the citizens, further in the opinion of Hegel and
Green, it may be a means to the fulfillment of the will without which
individuals are not full human. According to Rousseau, Jefferson, Friedman, it
may be a means as a pre-requisite of individual freedom seen as a human
essence.
Similarly the outstanding critics of property like Winstanley, Marx have denounced it as destructive of human essence, a negative means in relation an ontological end.
In all the above cases, property is taken as a means not as an end.
Similarly the outstanding critics of property like Winstanley, Marx have denounced it as destructive of human essence, a negative means in relation an ontological end.
In all the above cases, property is taken as a means not as an end.
03. Property as an End in itself
The supporters of liberal Utilitarian model, from
Locke to Bentham, recognize property as an end. It is maximization of
utilities. According to Bentham, the command of utilities is measured by the
material wealth. The maximization of material wealth is indistinguishable from
the ethical end; property is virtually an end in itself. In the words of Locke,
the unlimited accumulation is a natural right of the individual that is an end in
itself. Aristotle and Aquinas have considered, ‘’property as a means, concluded
for a limited property right. Hegel and Green, treats property, as a means,
concluded for an unlimited right’. The supporters of utilitarian tradition
treat, accumulation of property, as an end, always meant a right of unlimited
accumulation.
Later the concept changed and the utilitarian
Bentham held that the ultimate end to which all social arrangements should be
directed was the maximization of the aggregate utility (Pleasure minus pain) of
the members of the society. While listing out the kinds of pleasures, including
non material one, he held that wealth, the possession of material goods was so
essential to the attainment of all other pleasures that it could be taken as the
measure of pleasure or utility as such.
04. Property Theories
04. Property Theories
Efficiency Theory
Most laws exist to protect property, to give people
enforceable expectations of using good.
Tragedy of the commons
Refers to the proven observation that, when property is
open t use by all, each person overuses it, thus depleting
Example:
Pollution: each factory has incentives to pollute rather than spend money to
clean its emissions, because the cost/harm of each one’s pollution is spread to
others
Occupation Theory
He who seizes the land/property owns it
Labor Theory
Whoever labors to create property should own it
Natural Rights Theory
The right to own property is a natural right
Legal Theory
Private property is whatever the law recognizes as
property
Social Utility Theory
Society allows private property because doing so benefits
the social welfare.
05. Kinds of Property
Broadly Property is divided into three kinds those
are as follow:
01. Movable and Immovable property
Movable property
The definition of movable property is given
differently in many acts. Some of the definitions are as follows:
Section 3 (36) of the General Clauses Act defines
movable property as:
'Movable property shall mean property of every description,
except immovable property."
Section 2 (9) of the Registration Act, 1908 defines
property as:
'Moveable property' includes standing timber, growing
crops and grass, fruit upon and juice in trees, and property of every other
description, except immovable property."
Section 22 of IPC defines property as:
The words “moveable property” is intended to include
corporeal property of every description, except land and things attached to the
earth or permanently fastened to anything, which is attached to the earth.
Things attached to the land may become moveable property by severance from the earth.for example Cart–loaded of earth, or stones quarried and carried away from the land become movable property.
Immovable property
Things attached to the land may become moveable property by severance from the earth.for example Cart–loaded of earth, or stones quarried and carried away from the land become movable property.
Immovable property
The Term "Immovable Property" occurs in
various Central Acts. However none of those Acts conclusively define this term.
The most important act which deals with immovable property is the Transfer of
Property Act (T.P.Act). Even in the T.P.Act this term is defined in exclusive
terminology.
i. According to Section 3 of that Act,
"Immovable Property" does not include standing timber, growing crops
or grass. Thus, the term is defined in the Act by excluding certain things.
"Buildings" constitute immovable property and machinery, if embedded
in the building for the beneficial use thereof, must be deemed to be a part of
the building and the land on which the building is situated.
ii. As per Section 3(26) of the General Clauses Act 1897, "immovable property" "shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to anything attached to the earth". This definition of immovable property is also not exhaustive;
iii. Section 2(6) of The Registration Act,1908 defines "Immovable Property" as under:
"Immovable Property includes land, building, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth or permanently fastened to anything which is attached to the earth but not standing timber, growing crops nor grass".
The definition of the term "Immovable Property" under the Registration Act 1908, which extends to the whole of India, except the State of Jammu and Kashmir, is comprehensive. The above definition implies that building is included in the definition of immovable property.
ii. As per Section 3(26) of the General Clauses Act 1897, "immovable property" "shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to anything attached to the earth". This definition of immovable property is also not exhaustive;
iii. Section 2(6) of The Registration Act,1908 defines "Immovable Property" as under:
"Immovable Property includes land, building, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth or permanently fastened to anything which is attached to the earth but not standing timber, growing crops nor grass".
The definition of the term "Immovable Property" under the Registration Act 1908, which extends to the whole of India, except the State of Jammu and Kashmir, is comprehensive. The above definition implies that building is included in the definition of immovable property.
The following have been held as immovable property.
A right to collect rent, life interest in the income
of the immovable property, right of way, a ferry, fishery, a lease of land.
iv. The term "Immovable Property" is
defined in other Acts for the purpose of those Acts. As per Section 269UA(d) of
the Income Tax Act, 1961, Immovable Property is
defined as under :
a. Any land or any building or part of a building,
and includes, where any land or any building or part of a building is to be
transferred together with any machinery, plant, furniture, fittings or other
things, such machinery, plant, furniture, fittings and other things also.
Any rights in or with respect to any land or any
building or part of building (whether or not including any machinery, plant,
furniture, fittings or other things therein) which has been constructed or
which is to be constructed, accruing or arising from any transaction (whether
by way of becoming a member of, or acquiring shares in, a co-operative society,
or other association of persons or by way of any agreement or any arrangement
of whatever nature, not being a transaction by way of sale, exchange or lease
of such land, building or part of a building.
02. Tangible and Intangible property
Tangible property
Tangible property refers to any type of property that
can generally be moved (i.e., it is not attached to real property or land),
touched or felt. These generally include items such as furniture, clothing,
jewellery, art, writings, or household goods.
Intangible property:
Intangible property refers to personal property that
cannot actually be moved, touched or felt, but instead represents something of
value such as negotiable instruments, securities, service (economics), and
intangible assets including chose in action
06. Intellectual Property
Intellectual property is a term referring to a number
of distinct types of creations of the mind for which property rights are
recognized—and the corresponding fields of law.
Property does not just comprise of tangible things
like houses, cars, furniture, currency, investments etc and such assets are not
the only kind that can be protected by law. There are many other forms of
intangible property known as intellectual property that have been recognized
under the law and granted protection against infringement
Under intellectual property law, owners are granted
certain exclusive rights to a variety of intangible assets, such as musical,
literary, and artistic works; discoveries and inventions; and words, phrases,
symbols, and designs. Patents, trademarks and copyrights, designs are the four
main categories of intellectual property.
01. Patents
Patents are used to protect new product, process,
apparatus, and uses providing the invention is not obvious in light of what has
been done before, is not in the public domain, and has not been disclosed
anywhere in the world at the time of the application. The invention must have a
practical purpose. Patents are registrable nationally; the patent granted by
European Patent Office is a “bundle” of national patents. No EU-wide single
patent system exists to date, although the Community Patent is in the final
stages of enactment. Registration provides a patentee the right to prevent
anyone making, using, selling, or importing the invention for 20 years. Patents
are enforced by court proceedings. In addition, the Regulation on Supplementary
Protection Certificates (SPCs), grants “patent extensions” of up to 5 years to
pharmaceutical and plant products, providing as much as 25 years of patent life
for originator medicines.
02. Trade Marks
02. Trade Marks
A symbol (logo, words, shapes, a celebrity name,
jingles) used to provide a product or service with a recognisable identity to
distinguish it from competing products. Trademarks protect the
distinctive components which make up the marketing identity of a brand,
including pharmaceuticals. They can be registered nationally or
internationally, enabling the use of the symbol ®. Trade mark rights are
enforced by court proceedings in which injunctions and/or damages are
available. In counterfeiting cases, authorities such as Customs, the police, or
consumer protection can assist. An unregistered trade mark is followed by the
letters ™. This is enforced in court if a competitor uses the same or similar
name to trade in the same or a similar field.
Copyright
Copyright is used to protect original creative works, published editions, sound recordings, films and broadcasts. It exists independently of the recording medium, so buying a copy does not confer the right to copy. Limited copying (photocopying, scanning, downloading) without permission is possible, e.g. for research. Publication of excerpts or quotes needs acknowledgement. An idea cannot be copyrighted, just the expression of it. Nor does copyright exist for a title, slogan or phrase, although these may be registered as a trade mark. Copyright applies to the Internet with web pages protected by many different copyrights, so that permission should be asked to copy or print a page, or insert a hyperlink to it. Material cannot be posted on a Web site (Intranet included) without permission from the copyright holder.
Copyright is not registrable because it arises automatically on creation. Copyright is protected in the EU for 70 years after the author’s death for creative works, 50 years for broadcasts, etc and 25 years for published editions. Use of © is not required in most of Europe. Copyright is enforced by court proceedings.
03. Design Registration
Copyright is used to protect original creative works, published editions, sound recordings, films and broadcasts. It exists independently of the recording medium, so buying a copy does not confer the right to copy. Limited copying (photocopying, scanning, downloading) without permission is possible, e.g. for research. Publication of excerpts or quotes needs acknowledgement. An idea cannot be copyrighted, just the expression of it. Nor does copyright exist for a title, slogan or phrase, although these may be registered as a trade mark. Copyright applies to the Internet with web pages protected by many different copyrights, so that permission should be asked to copy or print a page, or insert a hyperlink to it. Material cannot be posted on a Web site (Intranet included) without permission from the copyright holder.
Copyright is not registrable because it arises automatically on creation. Copyright is protected in the EU for 70 years after the author’s death for creative works, 50 years for broadcasts, etc and 25 years for published editions. Use of © is not required in most of Europe. Copyright is enforced by court proceedings.
03. Design Registration
Design registrations are used to protect products
distinguished by their novel shape or pattern. They are available for one-off
items. The design itself must be new, although a 1 year grace period is allowed
for test-marketing. Registration is not possible where the new form is dictated
by function. The design is registrable either nationally or under an EU-wide
single right. It can also be protected by copyright.
07. Modes of Acquisition of Property
Property
is defined as a thing that is recognized as having some value by the society
and that which is being held by a person.
Salmond
defined four modes of acquiring property. They are
·
Possession
o
Possession of a
material object on which the title to the ownership of it exists in a person.
o
In general, the
first possessor of it will acquire a valid and good title over the object
against the world.
·
Prescription
o
It is the vesting
of rights by reason of lapse of time.
o
Lapse of time
could create a right or destroy a right. Hence this mode can be positive or
negative.
o
It is a
combination of possession and ownership.
·
Agreement
o
It is a legal
ownership on the property to the transferee.
o
The agreement
could be in oral or written form
·
Inheritance
o
This can be of
the form of testamentary succession or interstate [i]
08. Concept of Possession and Ownership
01. Salmond on Ownership
Ownership denotes the relationship between a person and
an object forming the subject-matter of his ownership. It consists in a complex
of rights, all of which are rights in rem, being good against the entire world
and not merely against specific person.
02. Incidence of Ownership
1. The owner has the right to possess things that he
owns.
2. The owner normally has a right to use or enjoy the
thing owned, the right to manage it, the right to decide how it shall be used
and the right of income from it. However, Right to possess is not a right strictu
sensu because such rights are in fact liberties as the owner has no duty
towards others and he can use it in any way he likes and nobody can interfere
with the enjoyment of his ownership.
3. The owner has the right to consume, destroy or
alienate the things. The right to consume and destroy are again straight
forward liberties. The right to alienate i.e. the right to transfer the
existing rights involves the existence of power.
4. Ownership has the characteristic of being ‘indeterminate
in duration’ and Ownership has a residuary character. Salmond
contrasted the rights of the owner with the lesser rights of the possessor and
encumbrancer by stating that “the owner's rights are indeterminate and
residuary in a way in which these other rights are not”.
03. Austin’s Concept of Ownership
Ownership or Property may be described accurately enough,
in the following manner: ‘the right to use or deal with some given
subject, in a manner, or to an extent, which, though is not unlimited, is
indefinite’.
Now in this description it is necessarily implied, that
the law will protect or relieve the owner against every disturbance of his
right on the part of any other person. Changing the expression, all other
persons are bound to forbear from acts which would prevent or hinder the
enjoyment or exercise of the right.
Austin further said that “Ownership or Property, is,
therefore, a species of Jus in rem. For ownership is a right residing in
a person, over or to a person or thing, and availing against other persons
universally or generally. It is a right implying and exclusively resting upon
obligations which are at once universal and negative”.
Dias on Ownership
After referring to the views of Salmond and other
Jurists, Dias came to the conclusion that a person is owner of a thing when
his interest will outlast the interests of other persons in the same thing.
This is substantially the conclusion reached by many modern writers, who have
variously described ownership as the ‘residuary’, the ‘ultimate’, or ‘the most
enduring interest’.
According to Dias, an owner may be divested of his
claims, etc., to such an extent that he may be left with no immediate practical
benefit. He remains owner nonetheless. This is because his interest in
the thing, which is ownership, will outlast that of other persons, or if he is
not presently exercising any of his claims, etc., these will revive as soon as
those vested in other persons have come to an end.
In the case of land and chattels, if the owner is not in
possession, ownership amounts to a better right to obtain the possession
than that of the defendant. It is 'better' in that it lasts longer. It is
apparent that the above view of Dias substantially agrees with that of Salmond.
According to Dias it is the outlasting interest and according to Salmond,
ownership has the characteristic of being indeterminate in duration and
residuary in nature.
04. Types of Ownership
Corporeal Ownership
|
Incorporeal Ownership
|
1. Corporeal Ownership signifies ownership in a
physical object.
2. Corporeal things are things which can be perceived
by senses.
|
1. Incorporeal Ownership is a right or an interest.
2. Incorporeal things cannot be perceived by senses and
are in tangible.
|
Sole Ownership
|
Co-Ownership
|
When an individual owns, it is sole ownership
|
When there is more than one person who owns the
property
|
Trust Ownership
|
Beneficial Ownership
|
1. There is no co-ownership.
2. The person on whom the responsibility lies for the
benefit of the others is called the Trustee.
3. The trustee has no right to the beneficial enjoyment
of the property.
4. Ownership is limited. A trustee is merely an agent
upon whom the law has conferred the duty of administration of property.
5. Trusteeship may change hands.
|
1. There can be co-ownership.
2. The person for whom the trust is created is called
the Beneficiary.
3. The Beneficiary has the full rights to enjoy the
property.
4. Ownership is complete.
5. Beneficial Owners remain the same.
|
Legal Ownership
|
Equitable Ownership
|
Legal ownership is that ownership which has its basis
in common law.
|
Equitable ownership comes from equity divergence of
common law. Thus, distinction between legal and equitable ownership is very
thin.
|
Vested Ownership
|
Contingent Ownership
|
1. Ownership is vested when the title is perfect.
2. Vested ownership is absolute.
|
1. Ownership is contingent when it is capable of being
perfect after fulfilment of certain condition.
2. Contingent ownership becomes vested when the
conditions are fulfilled.
|
Absolute Ownership
|
Limited Ownership
|
Ownership is absolute when possession, enjoyment,
disposal are complete and vested without restrictions save as restriction
imposed by law.
|
Limited Ownership is subjected to the limitations of
use, disposal or duration.
|
05. Possession
Salmond on Possession
Salmond said that in the whole
of legal theory there is no conception more difficult than that of possession.
The legal consequences which flow from the acquisition and loss of possession
are many and serious. Possession, for example, is evidence of ownership; the
possessor of a thing is presumed to be the owner of it, and may put all other
claimants to proof of their title. The transfer of possession is one of the
chief methods of transferring ownership.
Salmond also said that
possession is of such efficacy that a possessor may in many cases confer a good
title on another, even though he has none himself.
He also made a distinction
between possession in fact and possession in law.
1. Possession may and usually
does exist both in fact and in law. The law recognizes as possession all that
is such in fact, and nothing that is not such in fact, unless there is some
special reason to the contrary.
2. Possession may exist in
fact but not in law. Thus the possession by a servant of his master’s property
is for some purposes not recognized as such by the law, and he is then said to
have detention or custody rather than possession.
3. Possession may exist in law
but not in fact; that is to say, for some special reason the law attributed the
advantages and results of possession to someone who as a matter of fact does
not possess. The possession thus fictitiously attributed to him is termed constructive.
In Roman law, possession in
fact is called possessio naturalis, and possession in law as possessio
civilis.
06. Corporeal and Incorporeal Possession
Corporeal Possession is the
possession of a material object and Incorporeal Possession is the possession of
anything other than a material object.
Corporeal possession is termed
in Roman law possessio corporis. Incorporeal possession is distinguished
as possessio juris, the possession of a right, just as incorporeal
ownership is the ownership of a right.
Salmond further said that “corporeal
possession is clearly some form of continuing relation between a person and a
material object. It is equally clear that it is a relation of fact and not one
of right”.
What, then, is the exact
nature of that continuing de facto relation between a person and a
thing, which is known as possession?
According to Salmond, the
possession of a material object is the continuing exercise of a claim to the
exclusive use of it.
It involves two distinct
elements, one of which is mental or subjective, the other physical or
objective.
The mental element comprises
of the intention of the possessor with respect to the thing possessed, while
the physical element comprises of the external facts in which this intention
has realised, embodied, or fulfilled itself.
The Romans called the mental
element as animus and the subject element as corpus. The mental
or subjective element is also called as animus possidendi, animus sibi
habendi, or animus domini.
The intent necessary to
constitute possession is the intent to appropriate to oneself the exclusive use
of the thing possessed. It is an exclusive claim to a material object. Salmond
made following observations in this regard.
1. It is not necessarily a
claim of right.
2. The claim of the possessor
must be exclusive.
3. The animus possidendi
need not amount to a claim of intent to use the thing as owner.
4. The animus possidendi
need not be a claim on one’s own behalf.
5. The animus possidendi
need not be specific, but may be merely general. It does not necessarily
involve any continuous or present knowledge of the particular thing possessed
or of the possessor’s relation to it.
08. The Corpus Possessionis
The claim of the possessor
must be effectively realized in the facts; that is to say, it must be actually
and continuously exercised. The corpus possessionis consists in nothing
more than the continuing exclusion of alien interference, coupled with ability
to use the thing oneself at will. Actual use of it is not essential.
09. Immediate and Mediate Possession
The possession held by one man
through another may be termed mediate, while that which is
acquired or retained directly or personally may be distinguished as immediate
or direct.
There are three kinds of
Mediate Possession:
1. Possession that is acquired
through an agent or servant who claims no interest of his own.
2. The direct possession is in
one who holds both on the actual possessor’s account and on his own, but who
recognizes the actual possessor’s superior right to obtain from him the direct
possession whenever he choose to demand it.
3. The immediate possession is
in a person who claims it for himself until some time has elapsed or some
condition has been fulfilled, but who acknowledges the title of another for
whom he holds the thing, and to whom he is prepared to deliver it when his own
temporary claim has come to an end.
10. Concurrent or Duplicate Possession
1. Mediate and Immediate
Possession co-exist in respect of the same thing as already explained above.
2. Two or more persons may
possess the same thing in common, just as they may own it in common. This also
called as compossessio.
3. Corporeal and Incorporeal
Possession may co-exist in respect of the same material object, just as
corporeal and incorporeal ownership may.
11. Incorporeal Possession
In Incorporeal Possession as
well, the same two elements required, namely the animus and the corpus.
In the case of incorporeal things, continuing non-use is inconsistent with
possession, though in the case of corporeal things it is consistent with it.
Incorporeal possession is
commonly called the possession of a right, and corporeal possession is
distinguished from it as the possession of a thing. The distinction between
corporeal and incorporeal possession is clearly analogous to that between
corporeal and incorporeal ownership.
Corporeal possession, like
corporeal ownership, is that of a thing; while incorporeal possession, like
incorporeal ownership, is that of a right. In essence, therefore, the two forms
of possession are identical, just as the two forms of ownership are.
Hence, Possession in its full
compass and generic application means the continuing exercise of any claim or
right.
12. Paton on Possession
Paton said that even though
Possession is a concept of law still it lacks a uniform approach by the
jurists. Some jurists make a distinction between legal and lawful possession.
Possession of a thief is legal, but not lawful. In some cases, where possession
in the popular sense is meant, it is easy to use some such term as physical
control. Possession is also regarded as prima facie evidence of
Ownership.
According to Paton, for
English law there is no need to talk of mediate and immediate possession. The
Bailee and the tenant clearly have full possession: Salmond's analysis may be
necessary for some other systems of law, but it is not needed in English law.
13. Oliver Wendell Holmes and Von Savigny on Possesion
Savigny with other German
thinkers (including Kant and Hegel) argued that possession, in the eyes of
the law, requires that the person claiming possession intend to hold the
property in question as an owner rather than recognize the superior title of
another person, so that in providing possessory remedies to lessees, Bailees,
and others who lack such intentions, modem law sacrifices principle to
convenience.
To this Holmes responded that
he “cannot see what is left of a principle which avows itself inconsistent
with convenience and the actual course of legislation. The first call of a
theory of law is that it should fit the facts. It must explain the observed
course of legislation. And as it is pretty certain that men will make laws
which seem to them convenient without troubling themselves very much what
principles are encountered by their legislation, a principle which defies
convenience is likely to wait some time before it finds itself permanently
realized.”
Holmes also criticised Savigny
and other German theorists by saying that “they have known no other system than
the Roman”. In his works, Holmes proved that the Anglo-American Law of
Possession derived not from Roman law, but rather from pre-Roman German law.
One of Holmes's criticisms of
the German theorists, signally including Savigny, is that they "have known
no other system than the Roman, ' .6 and he sets out to prove that the
Anglo-American law of possession derives not from Roman law, but rather from
pre- Roman German law.
09. Theories of Possession and Ownership
The idea and concept of ownership is developed by slow
degrees with the growth of civilization. In primitive societies the only
concept known to human mind was that of possession. It was much later that the
concept of ownership adopted. So long as the people were wandering from place
to place and had no settled place of residence, they had no sense of ownership.
The idea began to grow when they started planting trees, cultivating lands and
building their homes. The transition from a pastoral to an agricultural economy
helped the development of the idea and concept of the ownership.
Thus, ownership denotes the relation between a person and
an objective forming the subject matter of his/her ownership. The normal case
of ownership can be expected to exhibit the incidents as follows: First, the
owner will have a right to possess the thing which s/he owns. Secondly, the
owner normally has the right to use and enjoy the thing owned. Thirdly, the
owner has the right to consume, destroy or alienate the thing. Fourthly,
ownership has the characteristics of being indeterminate in duration. Fifthly,
ownership has a residuary character.
01. Meaning and definition of ownership
The literal meaning of the term ‘own’ is to have or hold
a thing. The one who holds a thing as his own is said to be the owner and has
right of ownership ever it. Thus in the non-legal sense ownership may be
defined as the right of exclusive control over and disposal of a thing at will.
In the legal sense the term ownership carries the meaning
of right over a thing to the exclusion of all other persons. This implies
non-interference by others in the exercise of this right and must be
distinguished from mere holding of a thing in one’s possession.
Normally ownership implies,
a) the right to possess,
b) the right to use,
c) the right to manage,
d) the right to capital and
e) the right to income.
The concept of the ownership is one of the fundamental
juristic concept common to all system of law. Different writers have defined
ownership in different ways.
Austin
defined ownership as ‘a right indefinite in point of user, unrestricted in
point of disposition and unlimited in point of duration.’
Austin’s definition thus implies thee attributes viz.,
a) indefinite user,
b) unrestricted disposition
and
c) unlimited duration.
Holland‘s
definition: Austin’s definition of ownership has been followed by
Holland. He defines ownership as plenary control over an object. According to
him an owner has thee rights on the subject owned:-
a) Possession
b) Enjoyment
c) Disposition
According to Salmond, ‘Ownership in most comprehensive
significance denotes the relation between a person and any right that is vested
in him.’ That, which a man owns, according to him, is in all cases a right.
Ownership in this wider sense extends to all classes of rights, whether
proprietary or personal, in rem or in personam, in re-propria or in re-aliena.
He adds that it applies not only to rights in the strict sense but also to
liberties, powers and immunities.
Thus, according to Salmond ownership vests in the
owner a complex of rights which s/he exercises to the exclusion of all others.
For Salmond what constitutes ownership a bundle of rights which in here
in an individual. Salmond’s definition thus points out two attributes of
ownership:-
a) Ownership is a relation
between a person and rights that is vested in him;
b) Ownership is
incorporeal (immaterial, having no material body or form).
For Salmon a man may own a copyright or a right of way in
the same way as s/he owns a piece of land because in all the cases s/he owns
only a right and not a thing.
Hohfield
expresses a similar view (like that of Salmond) when he says ownership
is not a right but a bundle of rights, privileges, powers etc.
Duguit
has defined, ‘Ownership is a relation between a person and a thing. On account
of this relation the person has the power of disposal, use and enjoyment of the
thing.’
We may conclusion say that-
a) Ownership is a right
which comprises of powers, claims, privileges, etc.
b) Ownership is in respect
of a thing which may be corporeal or incorporeal.
c) The rights relating to
or in connection with ownership are subject to state regulation i.e., can be
limited or restricted by law.
d) Owner is he who is entitled to
the residue of rights with respect to an object left after the limitation
resulting from the voluntary acts of the owner (mortgage, lease or hire) or
those imposed by law are exhausted,
e) Ownership does not imply
or indicate absolute or unlimited rights either regarding use, disposal or
duration.
02. Essentials of ownership
i. The first
essential of ownership is that it is indefinite in point of user. It is
impossible to define or sum up exhaustively the wide variety of ways in which
the thing owned may be used by the person entitled to its ownership.
ii. Another essential of
ownership is that it is unrestricted in point of disposition. An owner can
effectively dispose of his property by a conveyance during his lifetime or by
will after his death.
iii. The owner has a right to possess
the thing which s/he owns.
iv. The owner has the right to exhaust
the thing while using it, if the nature of the thing owned is such.
v. Another essential of
ownership is that it has a residuary character. An owner may part with several
rights in respect of the thing owned by him/her.
vi. Generally, the owner has the right
to destroy or alienate the thing s/he owns.
03. Characteristics of ownership
i. Ownership is absolute or
restricted. It may be limited to a lesser or greater extent, either voluntarily
or under compulsion of law.
ii. Right of ownership may
also be restricted national emergency.
iii. An owner has to pay
taxes to the state and exercise of his right of ownership.
iv. An owner must not
exercise his right of ownership in such a way as to infringe the right of other
owners.
v. An owner has not the
freedom to dispose of his property in any way he likes. S/he can not transfer
the property to defraud his creditor.
vi. Infants and lunatics
are under a disability in the eye of law because they can neither understand
the true nature of their acts nor the consequences.
vii. Ownership does not
generally terminate with the death of the owner. It passes to legal heirs in
case of intestacy.
04. The subject matter of ownership
The prime subject matter of ownership consists of
material objects such as land and chattels. But ownership is by no means
limited to things of this category. A human being’s wealth may consist of such
things as interests in the land of others, debts due to him, shares in
companies, patents, designs, trademarks, copyrights and so on. Salmond
indeed took the view that the true subject matter of ownership has to be a
right in all cases.
05. Criticism
I.
Austin’s view of ownership has been criticized on various grounds;
a. It is pointed out
that ownership is not a right but a bundle of rights. It is the aggregate or
sum total of the rights of user and enjoyment.
b. Ownership is not merely
a right but also a relationship between the right owned and the person owning
it.
c. The idea of the
right of indefinite user is also attacked. Many limitations can be put upon
that user. The owner must use his property in such a way as not to interfere
with the rights of others.
II.
Salmond’s view of ownership has been criticized by many writers;
a. According to Duguit,
ownership is a relationship between a person and a thing over which he is
permitted, on account of this relationship, complete disposal, use and
enjoyment. What is owned is a thing and not a right.
b. According to Cook, there
are many rights which a person may possess and to use the term ‘owner’ to
express the relationship between a person and a right is to introduce necessary
confusion. Ownership is the name given to the bundle of rights.
c. According to Kocourek,
ownership is a relationship of the owner and a right to a thing which can be
economically enjoyed. The right of ownership is a matter of legal protection.
10. Kinds of Possession and Ownership
Ownership may be of various kinds.
Broadly, it may be classified under the following heads-
I. Vested and Contingent ownership
II. Sole and Co-ownership
III. Corporeal and Incorporeal ownership
IV. Legal and Equitable ownership
V. Trust and Beneficial ownership
VI. Absolute and Limited ownership
01. Vested and Contingent ownership
Ownership is either vested or
contingent. It is vested when the owner’s title already perfect, it is contingent
when his title is as yet imperfect, but is capable of becoming perfect on the
fulfillment of some condition. In the former case the ownership is absolute; in
the latter it is merely conditional. Once it is matured it automatically
converts into vested type of ownership.
02. Sole and Co-ownership
Sole ownership indicates the singular
control over the property. In this concept an individual only entertains all
sorts of rights of ownership over his owned property. Co-ownership is a concept
of plural or multiple owners holding right over the particular property. A
single person cannot entertain the rights of ownership in group.
03. Corporeal and Incorporeal ownership
Ownership over any material object
which can be movable or immovable but tangible objects is called corporeal
ownership. Incorporeal Ownership means ownership over the immaterial things
such as right over patent, design, trademark, copyright etc.
04. Legal and Equitable ownership
The distinct between legal and
equitable ownership is limited in English common law only. Legal ownership is a
legally defined and protected property. Generally, ownership is understood as a
legal ownership. In other words, legal ownership is that which has its origin
in the rules of the common law.
Equitable ownership is basically
carried out from the Chancery courts of UK. Equity courts protect the rights of
property. Equity law granted rights were the concept of equitable ownership.
Equity law is a concept of natural law philosophy. It does have no practicability
to rest of the world.
05. Trust and Beneficial ownership
Trust ownership is also known as
duplicate or dual types of ownership. It is well defined right that one should
use the right to favor other. This kind of ownerships looks like ceremonial
having no powers.
Beneficial ownership is relating to
rights over the trust to use the authority in favor of the trust itself. This
type of ownership is taken as a real ownership because it is powerful and using
right to favor the trust is to benefit all trustees. Moreover user is none
other than a trustee.
06. Absolute and Limited ownership
Absolute ownership is a concept of
right having no any conditions. Particular property is totally under the
control of owner. Limited ownership is a conditional approach of the rights
over the property. It is basically based on contract law or dependency and
various defined limitations towards the entertainment of right relating to
ownership.
07. Function of Ownership
From the above mentioned definition,
characteristic and classification etc. function of the ownership is itself
clear. According to Dias, the function of the ownership is as follows:
The ownership has been stated that as
right in itself, distinct from its component jurally relations, has always been
usefully for identifying certain groups of interests and for distinguishing
them from others. This is because ownership of these special groups was
originally an index not merely to wealth, but to social position, and it was
socially significant in other ways as well. Possession, as has been seen, is a
judicial concept and an instrument of judicial policy.
In the words of Lord Evershed
‘property like other interests has a social obligation to perform’. In English
law the various forms of land holding designated a man’s social standing, whereas
chattels, being fungible, did not have this function. Ownership of land was
also a means of controlling government in so far as the qualification to vote
was based upon it. Dominium in Roman law connected sovereignty, which is essentially
a social concept and something more than just ownership, things of ownership
the earliest forms of roman property, were precisely the things that were
important to a primitive agricultural community.
08. Distinction between Possession and Ownership
According to Ihering,
“Possession is the objective realization of ownership.” It is the external
realization of ownership. It is a valuable piece of evidence to show the
existence of ownership. It is in fact what ownership is in right. It is the de
facto exercise of a claim while ownership is the de jure recognition of that
claim. Possession is the de facto counterpart of ownership. It is the external
form in which rightful claims normally manifest themselves. For example, a
rented house is actually in possession of the tenant but the ownership of it is
vested in the landlord.
According to Salmond, “ownership
in its widest sense implies “the relation between a person and any right that
is vested in him. Possession is in fact what ownership is in right. Bringing
out distinction between possession and ownership Salmond pointed out
that a person is said to be the owner of a thing when his claim receives the
recognition and protection from the law of the state, but possession may be
exercised and realized even without such recognition or protection from the
law. Thus ownership has the guarantee of law but possession has some measure of
security and value from the facts, without any possibility of support from
land.
According to Austin, ownership
in its wider sense is a right “indefinite in point of user, unrestricted in
point of disposition and unlimited in point of duration”. The right of
alienation of property is a necessary incident to the right of ownership, but
there are many restrictions with regard to the alienation of property today.
According to Pollock,
“Ownership may be described as the entirety of the powers of use and disposal
allowed by law. The owner of a thing is not necessarily the person who at a
given time has the whole power of use and disposal; very often, there is no
such person. We must look for the person having the residue of all such power
when we have accounted for every detached and limited portion of it, and s/he
will be the owner even if the immediate power or control and user are elsewhere”.
Possession and ownership differ in
their mode of acquisition. The transfer of possession is comparatively easier
and less technical but the transfer of ownership in most cases involves a
technical process of convincing.
On the basis of above discussion, we
can compare ownership and possession in this way in brief:
Ownership
|
Possession
|
i. Ownership is an absolute authority over the property.
|
i. Possession is relative authority
holding physical control over the property.
|
ii. Ownership is perfectly legal right.
It shows legal situation.
|
ii. Possession is possessory right only. It shows real
situation.
|
iii. Ownership is a de jure concept.
|
iii. Possession is a de facto concept.
|
iv. Ownership right is wider concept.
|
iv. Possession is a right of consumption
only.
|
v. Ownership holds unlimited and
uncontrolled rights.
|
v. Possession right is limited concept of right.
|
vi. Transfer of ownership is not easy and
it needs to legal or formal procedures, prerequisites of registration.
|
vi. Possession is comparatively easy and
practically no need to register and such formalities.
|
vii. Ownership has no technical
obstructions to transfer.
|
vii. Possession faces the technical
obstacles for transfer.
|
viii. Ownership is a union of ownership and
possession.
|
viii. Possession is a single concept giving
no right of ownership.
|
ix. Ownership only does not carry practical use in the
absence of possession.
|
ix. Possession may create ground for the
ownership as well.
|
x.
Ownership does not get priority if there is an equal right over the same
property.
|
x. Possession is the real and basis of priority for the
situation of equal rights.
|
09. Relation between Possession and Ownership
We have already adverted to the chief
differences between possession and ownership. Speaking generally, ownership and
possession have the same subject matter. Possession has been treated as an
external evidence of ownership. A person in possession of a thing may be
presumed to be the owner of it. The person in possession need not prove his
ownership; instead, the burden of disproving ownership of the possessor is on
the person who disputes his ownership. A long continuous and uninterrupted
possession is an effective method of realization of ownership.
According to Salmond, the
subject matter of possession and ownership is more or less the same, a thing
which may be owned, may also be possessed. Likewise, a thing which may be taken
into possession may also be owned. Salmond held that whatever may be
owned may be possessed, and whatever may be possessed may be owned. Salmond
further pointed out that “the law of prescription determines the process by
which through the influence of time, possession without title ripens into
ownership and ownership without possession withers away and dies”.
According to Sethna, the
relationship between ownership and possession is same as that of body with
soul. Just as existence of body is necessary for the realization of soul,
likewise possession is necessary and useful for the expression of the ownership
because it (possession) is external and formal.
Sir Henry Maine suggested that
historically, the concept of possession is prior to that of ownership. In fact,
right of possession has evolved out the right of ownership.
Possession is the de facto exercise of
a claim while ownership is the de jure recognition of it. Possession is the
guarantee of fact whereas ownership is the guarantee of law. A claim to
possession is maintained by one’s own self asserting will but a claim to
ownership is legally protected by the will of the State. Ihring observed
that possession is the objective realization of ownership. Possession in fact,
is what ownership is in right. The distinction between possession and ownership
on the basis of fact and right is not tenable. Fact and right are not quite
separate and independent ideas. One cannot exist without the other.
Conclusion,
The way of ownership, philosopher Salmond,
had indicated the ownership cooperates with person and right. Austin quoted
right to user of indefinite nature, Holland concerned for power to the
possession, enjoyment and ownership.
Basically, ownership functions
according to its definition and characteristics. In the functionally, it has
social position and significant. It has the judicially as well as social
control and policy. Ownership of land was also means of controlling government.
By the way ownership is depends on according to the nation’s government.
Although, philosopher defined its nature, definition, acquisition, kinds and
function related with possession, owner, right and so on but it has naturally
right with the nation about property, citizens and power.
At last, we can say that ownership is
strictly a legal concept and possession is non-legal and pre-legal concept, so
they have basic different but closely co-related with each other.
11. Modes of Acquiring Possession and Ownership
A thing is capable of being owned, the
methods of acquiring ownership over it will vary from legal system to legal
system. There are two modes of acquisition of ownership and those are original
and derivative. Original acquisition can be absolute: res nullius and by
occupation. Basically, one can acquire ownership in two ways:
i. by operation of law or
ii. by reason of some act or event.
As to the first, a statute might
provide that all A’s property should after a certain period of time vest in B.
As to the second this may consist in the first taking or madding a thing, both
being cases of original acquisition. Thirdly, the thing may fall into man’s
ownership without any human act, as would be the case if a piece of land were
to break off from an island in a river and attach itself to my land on the
opposite bank.
01. Original Mode
The original mode is the result of some independent
personal act of the acquirer himself. This mode of acquisition may be of
three kinds:
02. Absolute
When a ownership is acquired over previously ownerless
object i.e. who took it first became the owner. For example when one
shoots a bird or deer in a jungle open to public get gets the ownership.
03. Extinctive
Where there is extinction of previous ownership by an
independent adverse act on the part of the acquirer, e.g. prescription. This is
how a right of easement is acquired after a passage of time prescribed by
law.
04. Accessory
When requisition of ownership is the result of accession.
E.g. if tree bears fruits, the produce belongs to the owner unless he has
parted with the right to the same.
05. Derivative Mode
When ownership is derived from a previous owner it is
called derivative acquisition. This is derivative mode takes place from
the title of a prior owner. It is derived either by purchase exchange, will,
gift etc. Every legal system of the world
provides some rules for the requisition of ownership by this mode. Indian
Transfer of Property Act provides rules for the transfer of immovable property,
Sale of Goods Act lays down rule for the transfer of movable property,
Partnership Act for the transfer of property of the firm and the Companies
Act for the transfer of Company property. Thus, the Derivative mode
of acquisition of ownership may be:
·
Title of prior owner
·
Purchase
·
Will
·
Gift
·
Transfer of Ownership
·
Succession
·
Exchange
·
Sale
06. Title of Prior Owner
Agreement is an important means for acquiring property.
In agreement a title is acquired with the consent of the previous owner. A wide
connotation has been given to agreement as the model of acquiring property.
07. Purchase
A contract for sale does not confer title in immovable
property. Section 54 of the Transfer of Property Act provides that a contract
for the sale of immovable property is a contract that a sale of such property
shall take place on terms settles between the parties; it does not of itself,
create any interest in or charge on such immovable property. However still, if
a person has entered into possession over immovable property under a contract
for sale and is in peaceful and settled possession of the property with the
consent of the person in whom vests the title, he is entitled to protect his
possession against the whole world, excepting a person having a title better than
what he or his vendor possesses.
08. Will
This is the one and only instrument, which allows a
person to dispose his property while he is alive and to take effect after his
death.
09. Gift
The Hindu Succession Act has not made any provisions for
making a gift by a manager of a joint family of his interest in the joint
family property and as such Section 30 does not avail to the appellant and
clearly of the opinion that the gift by the first defendant are invalid even as
regards his interest in the joint family properties. There can be a valid gift
of property in the possession of a lessee or a mortgagee and a gift may be
sufficiently made by delivering constructive possession of the property to the
donee. Some authorities still take the view that a property in the possession
of a usurper cannot be given away but this view appears to us to be too right.
The donor may lawfully make a gift of a property in the possession of a
trespasser. Such a gift is valid, the donee or des all that he can to put it
within the power of the donee to obtain possession
10. Transfer of Ownership
The rights of a transferee from a co-owner are regulated
by Section 44 of the Transfer of Property Act which provides that whereas one
or two or more co-owners of the immovable property legally competent in that
behalf transfers his share of such property or any interest therein, the
transferee acquires as to such share or interest and so far as is necessary to
give effect to the transfer, the transferor’s right to joint possession or other
common or part enjoyment of the property, and to enforce a partition of the
same but subject to the conditions and liabilities affecting at the date of the
transfer, the share or interest so transferred. According to this statutory
provision also what transferee gets is the right of the transferor to joint
possession and to enforce a partition of the same irrespective of the fact
whether the property sold is fractional share of specified portion, exclusively
in possession of the transferor.
11. Succession
The natural way of acquiring title to property is by
succession. By succession property devolves on a person as a matter of course
by operation of law, partition, custom or usage under intestate succession and
testamentary succession operates in a different way and is dealt with
hereunder.
12. Exchange
Section 118 of Transfer of Property Act defines exchange
as “when two persons mutually transfer the ownership of one thing for ownership
of another, neither thing or both things being money only, the transaction is
called as exchange.
13. Sale
Sale is the most convenient mode of transfer of immovable
property and consequently purchase is the ideal mode for acquiring title.
14. Process
Identification of relevant documents:
15. Tracing and scrutiny of title
For the purpose of scrutiny of title, property can
conveniently be divided as registered and unregistered.
16. Unregistered Property
As a general rule, the seller should show a good title.
For making the Buyer’s job easier, he should deliver to the Buyer an abstract
of title (such as Wills, deeds of conveyance and also the events causing
devolution of the ownership) at his (Seller’s) expense. Observe if there are
any defects.
17. Registered PROPERTY
Unlike the unregistered property where the responsibility
of the Seller is heavy, the Buyer has more care to be taken in case of
registered property. The seller here, no longer need to trace the history of
the property. The maxim caveat emptor applies and the Buyer carries more
responsibility to trace the title of the Seller.
Document Check List:
·
Absolute Sale Deed/Conditional
Sale Deed/auction sale deed executed by the statutory bodies.
·
Encumbrance Certificate from
the Sub Registrar from the date of the allotment till date or 30 years earlier
till date.
·
Possession Certificate issued
by the statutory body/society.
·
Allotment letter issued by the
statutory body/society.
·
Khatha Certificate issued by
the statutory authority.
·
Certified or copy of the
Lease-cum-sale agreement/auction sale agreement.
·
Latest Tax paid receipt
·
Auction sale confirmation
issued by the statutory authority in case of auction sites.
·
Genealogical Tree.
3.Map Obtain an authenticated copy of the site plan. See,
if the schedule of the property tallies with the plan
4. Searches: Searches in various offices like, Sub
Registrar’s office, Taluk Office, Municipal Council, City Corporation,
Registrar of Companies, Civil Courts etc. have to be carried out and find out
if the Seller has concealed any thing that is vital about the property in
question.
5. Revenue Records: Search into revenue
records is very important because the entries in revenue records depict
possession.
6.Presumption regarding entries in revenue records:
If name of a person is entered in revenue records, a presumption arises in
favour of the person and unless and until this presumption is rebutted, the
entries have to be considered as true and correct.
7. Effects of entries in revenue records: However,
the entries in revenue records alone will not convey and title or will not have
the effect of extinguishing the already existing title.
8. Two revenue records relating to same property: If
there are two sets of revenue records regarding the same property and their
entries are conflicting then the latest of the records will prevail.
9.Unchanged entries: The entries in revenue records
which are unchanged fairly for a long time till not be rebutted by some stray
entries.
10.Patta book: Entries in Patta Book do not confer any
title.
11.Mutations:Whenever transfer of immovable property takes
place, the name of the transferee (purchaser, lessee, mortgagor etc.) and
nature of transfer will be entered in the revenue records. The entries are
called the mutation entries.
12.Searches in the revenue records: Search of
revenue records in revenue offices, Municipalities, Panchayats, City
Corporations, etc. evidences possession of the property and also payment of
property tax or land revenue as the case may be which fact can be further
ascertained from the receipt issued at the time of payment.
13. Searches in Sub-Registrar’s office: Book No.1
and Index thereto are the registers to be looked into. These registers show
name of the Village, town or area and also the names of the transferor and the
transferee. They also describe the property, page Numbers, document Numbers and
also volume Numbers. Once the name of the proposed transferor’s name is found,
compare the description of the property with that of the deed produced by him.
14.Searches in land acquisition offices: This is an
extra precaution to be taken. By making searches in the office of Land
Acquisition Officer, check whether the land in question is proposed for
acquisition in future. In Urban areas this fact can be ascertained from what is
called as the Comprehensive Development Plan or Outline Development Plan as the
case may be, which can be obtained from the concerned development authority.
15.Searches in Registrar of companies: The Register
of Charges is the Chief record to be looked into the office of the Registrar of
Companies. By looking into this register, see the particulars as to date of
creation of charge, date of its registration, assets covered by the charge,
name of the charge holder etc.
16.Searches in courts: Though this is somewhat
tedious job, it is inevitable. Visit the Ministerial Office or the concerned
office of the Jurisdictional Civil Court where sits and probate and succession
cases are filed. Inspect the concerned register and make a search for at least
15-20 years and find out whether there is any dispute pending regarding the
property in question. If the property is bequeathed, find out whether the same
is probated.
17.Report: The title report is the sum and
substance of the findings that have cropped up during tracing and scrutiny of
title. Therefore a title report is the sum and substance of the various
exercises under taken for investigation of title.
18.Specimen title report:
·
Title report of the property
address…………………. of M/S. ………………
·
Title: Title report regarding
the land and building belonging to…………
·
Name and Address of
Buyer/Lessee/Mortgagee etc.
·
Discuss on the title of the
property in the context of the Seller’s title
·
Discuss on the title of the
property with respect to the predecessors
·
Searches: Discuss the results
emerged as a result of searches made in the Sub Registrar’s office, ROC, Courts
etc.
·
Defects: Point out about the
defects if any, in the title. Discuss about the remedies for curing the defects
in the title
CONCLUSION
Jurisprudence, being the
science and philosophy of natural, positive and normative laws has a lot to do
in the legal life of the society as a whole. Unfortunately, the knowledge
provided by Jurisprudence is practically put outside the purview of mandatorily
enforceable legal system. However, this Science has a little influence among
academicians and Jurists, but among the law making and executing authorities do
not take Jurisprudence of much significant. The nature of laws, their function,
their evaluation, and their evolution have a history with little orientation of
Jurisprudence. Until and unless Jurisprudence forms an integral part of
legislation and executive action, it cannot have much application as far as
common people are concerned.
However, Jurisprudence reminds
us what law ought to be when hardships in law as it is challenge the aggrieved
parties. The Moral and qualitative approaches of this Science, if properly and
effectively applied shall form a strong foundation for rule of law that is
highly appreciated by people at large. The present dilemma of disbelief is
legal process shall cease, then, forever.
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