Module 2- What Are Property Rights Flashcards

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0
Q

How does Sonnekus distinguish between “the law of things” and the “law of property”?

A

The law of things deals firstly with the norms that govern the relationship between legal subjects and their tangible things that forms part of that subject’s estate. In a society that recognises private or individual property rights as the starting point, it is accepted that not all tangible goods are available to the whole society or society’s benefit. The law of property organises the relationship and therefore the applicable competencies of subjects with regards to the tangible goods that complies with the description of a “thing”.

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1
Q

How does Van der Merwe define the “law of things”?

A

The law of things is the system of legal norms that regulates the legal relationship between legal subjects and “things” as legal objects.

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2
Q

How do Van der Walt and Pienaar define the law of property?

A

The law of property deals with the rights and actions of persons with regard to things and other forms of property, as well as other relations between persons and property. It describes the ways in which property rights can be acquired and exercised lawfully and the remedies by which they are protected against infringement, as well as the legal results and implications of other relations between persons and property.

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3
Q

How do Mostert, Pope et al. define the function of the law of property?

A

The formal function of property law is to harmonise different individual interests in respect of property; to guarantee and protect individual rights (and sometimes group rights) to property; and to control the relationships between natural or juristic persons, the things to which they are entitled, and the rights and obligations that arise from these relationships between different persons in respect of things.

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4
Q

Are the “law of things” and the “law of property” the same thing?

A

The “law of things” and “law of property” are NOT synonymous. Property is a much wider terms than “things”, and refers to a wide variety of patrimonial assets. While all things are property, not all property is things. It is important to bear this in mind, as some scholars argue that a course like this should only focus on things.

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5
Q

In general, what does the “law of things” refer to?

A

In general “law of things” will only refer to the private relationship between a legal subject and a legal object.

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6
Q

In general, what does the”law of property” refer to?

A

“Law of property” refers to a broader scope of relationships that includes public law relations with a proprietary character and includes incorporeal objects.

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7
Q

How did the traditional “law of things” develop?

A

Traditional law of things developed around certain principles. These principles provided a framework for development.

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8
Q

What are the basic principles that the traditional law of things developed around? -6 points

A

1) Numerus clausus principle;
2) Principle of Absoluteness;
3) Publicity principle;
4) Specificity principle;
5) Transmissibility;
6) Abstract principle.

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9
Q

How has the Constitution changed the basic principles of the traditional law of things?

A

Some scholars will argue that the Constitution does not influence the law of property, as Constitutional law deals with public relationships, while the law of property should only look at private relationships that leave very little room for the Constitution. In light of s 8 of the Constitution (application of the BoR), this is a very difficult argument to make.

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10
Q

What does the Numerus clausus principle refer to?

A

The numerus clausus principle refers to the close systems we find in property law. If we look at delivery, for instance ways in which property can be transferred, original acquisition methods. Acquisition of property must therefore fall in one of the recognized categories of transfer of property for it to be recognized. There used to be a closed system of real rights.

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11
Q

Why would one want a closed system such as this?

A

Well, if there are only certain ways in which property can be transferred, it helps with legal certainty. Legal certainty is good insofar it enables people to position themselves and make decisions with relative certainty about the outcomes.

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12
Q

In a changing society, why might such closed systems hamper change?

A

In a changing society, such closed systems might hamper change. Constructive delivery, for instance, is one of the fields that had to allow more forms of delivery to keep up with commercial demands. New real rights were also created: think of the apartheid 99 year lease in cities, mineral rights, sectional titles etc.

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13
Q

What does the principle of Absoluteness entail?

A

The idea that property rights are more or less absolute. Real rights gives the holder of such a right absolute certainty that his right will be respected and protected, and even if other people acquire rights in his property, his rights will always receive preference. A real right can also be enforced against everybody. Of course personal rights are also absolute in the sense that they must be respected by everyone, but a real right is more absolute.

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14
Q

What is a practical example of the principle of Absoluteness?

A

Ben agrees to sell his car to Connor. Before Ben delivers the car to Conner, he sells and delivers it to Anne who offered a higher price for it. Connor, in this case, only has a contractual claim against Ben (for the delivery of the vehicle), and can only claim damages for breach of contract. He cannot claim the car, as the car was never delivered and ownership therefore not transferred. Because the car was delivered to Anne, she became owner, and her ownership of the car therefore needs to be respected by everybody.

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15
Q

What does the Publicity principle entail?

A

It requires that the real relationship between the legal subject and legal object must be clear, and publicly visible. Since the rights must be respected, it is important that it must be clear, who, for instance, is the owner of a thing. It should be clear which rights are transferred to whom at what time. This is easy, for instance, with real delivery, where the mere handing over of a thing shows that ownership is transferred (think when you buy a chocolate at the shops). With immovable property this function is adhered to by registering property in a register that is available for public viewing.

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16
Q

Why might the principle of Publicity be a problem in the case of a bona fide possessor?

A

Think of the person who mistakenly takes your textbook thinking it is theirs. To the outside world it might look as if it is theirs, when in fact it is not.

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17
Q

In what other instances can publicity often be a problem?

A

With certain forms of delivery, publicity is often a problem. Sometimes ownership can be transferred without the new owner being in control of the object. Publicity also plays a role in original acquisition of ownership.

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18
Q

What does the principle of Specificity entail?

A

Specificity implies that a real right can only exist in respect of certain things. An owner, for instance, does not have a general right with regards to all his property, but has a specific real right in respect of each thing individually. If you sell “all your property”, the transfer of ownership of each thing will be handled individually. Think for instance when you want to sell all your textbooks at the end of the year. Even if you sell them all to one person, the law will look at the transfer of each book individually. If you encumber your property with a real right, you also have to specify all the property that will be encumbered individually. Like with all principles, there are exceptions. For instance, a covering bond does not specify property, but an amount.

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19
Q

What does the principle of Transmissibility entail?

A

Real rights can be freely transferred to heirs, for instance, which means that transmissibility is another principle of property law. You cannot transfer your personal rights, as they bind you personally, but it is possible to, for instance, transfer your ownership to your child through a will. Transmissibility is limited when you have a bond over your house, for instance. You can only transfer your property once the bond is paid.

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20
Q

What does the Abstract Principle entail?

A

The abstract principle dictates that the mere intention of the parties to pass ownership is sufficient to transfer such ownership, and that one does not need to look at the underlying causa for such transfer.
Therefore, if the contract of sale that preceded the transfer of ownership is invalid, it does not influence the transfer of ownership self. The real agreement to transfer ownership is treated in the abstract and independently from the contractual agreement of transfer.
Where there is an absolute statutory prohibition on concluding certain contracts, for example, the abstract principle will not be adhered to. You can also contract that the transfer will only be valid if the contract is valid.

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21
Q

What is a “legal subject”?

A

A legal subject is any person (natural or legal person) that can hold rights and incur duties with regard to an object.

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22
Q

What are the categories of legal subjects?

A

There are only two categories of legal subjects:

1) Humans; and
2) Legal persons such as companies, clubs etc.

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23
Q

How does the law look at “property”?

A

The law will look at “property” as rights that people have with regards to things.

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24
Q

What does the doctrine of subjective rights entail?

A

A legal subject is a natural OR juristic person who can acquire right and duties in terms of a legal relationship. A legal object is anything in respect of which a legal subject can acquire and hold a right.

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25
Q

What is a legal object?

A

A legal object is anything in respect of which a legal subject can acquire and hold a right. A legal object is usually classified according to its nature. A thing is, for instance, a legal object in the Law of Property.

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26
Q

What is a personal right?

A

It is a subjective right that has performance as its object (think contract or delict).

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27
Q

What is a personality right?

A

A personality right is a subjective right that has an aspect of personality (such as your dignity or privacy) as its object.

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28
Q

What is an immaterial property right?

A

An immaterial property right is a subjective right that has a type of immaterial property (and this includes subjective rights) as its object.

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29
Q

How do “real rights” differ from other subjective rights?

A

they can be enforced “against the world”. They impose duties on everyone else to respect those rights. People must respect your subjective right to your property. All people.

Of course all people must also respect your contractual right that you might have with B.

But to say that your property rights can be enforced against the world implies that even if you don’t have any legal relationship with a person (ie signing a contract with B), you can enforce your property right against that person should they infringe on it.

Think for instance: you lend your car to B. B without your permission, passes it on to C. You, without having any other legal relationship with C, can institute a rei vindication against C to claim back your vehicle.

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30
Q

What is the object of a “real right”?

A

The object of a real right is a thing. A thing is a legal object that is characterised by its material nature.

31
Q

What are the different material nature’s that real rights can be characterised in?

A

1) Independent;
2) Corporeal;
3) External to humans;
4) Subject to human control;
5) Valuable to humans.

32
Q

What is the object of a personal right?

A

The object of a personal right is a performance. Performance is always a human action to dare, facere or non facere (to give, to do or not to do). The right to a performance is therefore a personal right.

33
Q

What are practical examples of a personal right?

A
  • A concludes a contract with B to sell his car for R50 000. A has a personal right for the payment of R50 000, while B has a personal right against A for the delivery of the car.
  • C has a delictual claim for damages against D for R10 000, because D negligently caused a motor vehicle accident and damaged C’s property.
  • E has a maintenance claim against his father F.
  • G has a claim against the executor of H’s estate for his part of the inheritance.

In each case the person A, B, C, E and G has a personal claim against somebody for the payment of a sum of money or the delivery of a thing. ONLY those persons can claim it against ONLY the person with the obligation to perform. They cannot claim it from the world. No stranger can waltz in and demand the car, or claim part of the inheritance against H.

34
Q

What is the wide definition of “property”?

A

“Property” used widely refers to everything that forms part of a person’s estate (ie when you die, what can be inherited).

35
Q

What is the definition of property used in its narrow sense?

A

In the narrow sense, “property” refers to “things”. This is the relationship of a person, with regard to a legal object, namely a “thing”. Most textbooks will refer to “things” as opposed to “property”.

36
Q

Why will most textbooks refer to “things” as opposed to “property”?

A

“Property is […] a shorthand reference to someone’s ability to undertake certain actions with certain kinds of objects, but is also used to refer to the particular objects themselves. So, even lawyers use the term ‘property’ in many different contexts. They may use it to refer to any of at least three different concepts. Sometimes, the term signifies the right of ownership in a legal object. In other circumstances, property simply refers to the legal object to which the right of ownership relates. How the term is used depends on the specific context. In some instances, it refers only to tangible objects, while in others it includes incorporeal objects. Furthermore, the presence of a clause protecting property as a fundamental right in the Constitution, gives property yet another meaning. Here it denotes all the legal relationships that qualify for constitutional protection under the constitutional property clause, even though they do not necessarily amount to either the right of ownership or the object to which ownership relates.”

37
Q

Why is the definition of a “thing” NB for the purposes of Property Law?

A

The definition of a “thing” as a legal object is very important for purposes of this course. Real rights only relates to “things”. If the object of a right is not a “thing”, it is not a real right, but might be a personal right, for instance.

38
Q

What does Outside/ External to Humans with regards to the characteristics of a thing, refer to?

A

A human cannot be a “thing”, firstly, because slavery is abolished (so you cannot “own” another person, and secondly, because as a legal subject, it is impossible to also be a legal object. However parts of bodies which can no longer be connected to a human being, can be regarded as negotiable things.

39
Q

What are examples of things characterised as External/Outside humans?

A
  • Hair that is cut off and made into a wig.
  • Semen.
  • Pacemaker or other artificial organs / limbs
40
Q

What are things External to Humans subject to?

A

It is subject to the provisions of the Human Tissue Act 65 of 1983, especially regarding the availability of human reproductive cells and organs for the purposes of artificial reproduction and organs for the purposes of organ reproduction.
It prohibits the sale of organs and human reproductive cells.

41
Q

Can a corpse be regarded as a thing External to Humans?

A

Corpses will probably be regarded as things in certain circumstances, but it will be things outside legal commerce (extra commercium).

42
Q

What does Corporeal with regards to the characteristics of things refer to?

A

This is probably the most controversial characteristic of things. Corporeality refers to something that can be touched and felt, or perceived by any of the five senses and occupying space.

Some authors argue that only corporeal things can indeed be things. This is based on the Roman and Roman Dutch law authorities.

43
Q

Why do some authors believe that only corporeal can indeed be things, and incorporeal things shouldn’t be regarded as things?

A

These authors fear that including incorporeals into the realm of “things” will lead to confusion because:
• when is the incorporeal property the object of a real right, and when will it be the object of a immaterial property right? This is important, as there are different rules and remedies applicable.
• Judicially it is impossible to argue that a right can be the object of another right.
• Since a real right confers direct physical powers over a thing, it is impossible to argue that a person can have direct physical power of something that is incorporeal.

44
Q

In what instances have the courts recognised incorporeal property as things?

A
  • Ex part Eloff 1953 (T) recognized a usufruct in respect of mineral rights as a thing.
  • The Deeds Registry Act recognizes real security rights with regards to real rights such as long leases, personal servitudes, mineral rights and lease of mineral rights.
  • Janse van Rensburg v Grieve Trust [1993] (C) regarded a purchaser’s personal right to a traded-in vehicle in terms of his credit agreement an incorporeal thing for purposes of the sales contract.
  • Ben-Tovin v Ben-Tovin 2001 (C) ruled that shares in a company are incorporeal things.
  • Badenhorst v Balju Pretoria Sentraal 1998 (T) held that membership in a closed corporation is an incorporeal movable thing that can be attached by the sheriff.
  • Graf v Beuchel 2003 (SCA) regarded the loan account of a director of a company as an incorporeal thing that can be ceded to another person.
  • A creditor’s right to use a telephone bandwidth system installed on business premises was regarded as a thing in Telkom SA v Xsinet 2003 (SCA).
45
Q

What is the compromise/ midway between recognizing and not recognising incorporeal property as things?

A

It would probably be to say that corporeality is a characteristic, but should not be an essential characteristic and that in some instances a more pragmatic approach would call for the recognition of incorporeal property to be regarded as things.

46
Q

What does Independence refer to, with regards to a characteristic of things?

A

To have a legal existence a thing must be independent. A house is attached to the land (generally, at least) and therefore a house will not be a “thing” separate from the land it is attached to. A key on its own in general does not have much meaning, but serves as a means of accessing another object, such as a car.

Things need not be physically independent, juridical independence is enough. If something is physically part of another thing, but the law determines that they are separate, this is sufficient. This is necessary for purposes of regarding pieces of land as “things”.

This is also important for instance in the contract of sale of immovable property: if you do not want to sell a chandelier or a built in cupboard as part of the house, it must be specified in the contract

47
Q

What does (Juridicial) Control refer to, in regards to a characteristic of things?

A

A thing can only be a thing if it can be appropriated. One can only be in control if you can enforce and protect the right in the thing. This is not possible with regard to the sun, moon and starts. Air can also not be controlled (unless it is in a cylinder).

48
Q

What does Use and Value refer to, with regards to the characteristic of things?

A

Value in this context can be both economic or sentimental value, and can include negative values. Some scholars only regard a thing as a thing if it has economic value.

49
Q

How can things be classified?

A

Things can be classified either:

1) Based on their negotiability; or
2) According to their nature.

50
Q

How can things be classified based on their negotiability?

A

1) Res in commercio; or

2) Res extra commercium.

51
Q

What are things Res in commercio?

A

These are things thar are in commerce, such as:

1) Res alicuius- Things owned by a natural person or things in a deceased or insolvent estate.
2) Res nullius- Things capable off being owned but which, at a particular stage, are not owned by anyone.
3) Res derelictae- Things no longer within physical control of an owner and in respect of which he no longer has intention to be owner.
4) Res deperditae- Things lost and no longer within physical control of the owner but in respect of which he has not lost intention to be owner.

52
Q

What is the difference between Res singulorum and Res universitatis?

A

Things individually owned are res singulorum while things owned in a corporation are res universitatis.

53
Q

What is the distinction between Res nullius and Res derelictae?

A

Res nullius proper refers to things that were never owned before (for example: wild animals) , while res derelictae refers to things that were owned before, but were abandoned (an old shoe that you threw in the trash).

54
Q

What are things Res extra commercium?

A

Res extra commercium are things that cannot be privately owned, such as:

1) Res communes omnium- Natural resources falling outside legal commerce and which are available to all people, eg water, air.
2) Res publicae- Things owned by the state and used directly for the public’s benefit, eg public roads, national parks.

55
Q

What is Res divini iuris?

A

Res divini iuris refers to things that are religious, but we do not use this in modern property law anymore. This used to be graves and graveyards, but it’s either privately owned or publicly managed.

56
Q

What happens if you were to compress air in a cylinder?

A

If you compress air in a cylinder, you might be able to sell it. Such air will then be in commercio. Things can change categories.

57
Q

How can things be classified according to their nature?

A

1) Corporeal/Incorporeal or Tangible/Intangible;
2) Singular/Composite;
3) Movable/Immovable;
4) Replaceable/Irreplaceable or Fungible/Non-fungible;
5) Consumable/Non-Consumable;
6) Divisible/indivisible.

58
Q

What are Corporeal/Incorporeal things?

A
  • Corporeality means having a physical existence. Make sure that you look in the dictionary what else it means.
  • Incorporeal things cannot be touched by the senses. They are abstract without any physical existence, but might have pecuniary value.
59
Q

What is an example of an incorporeal thing?

A

Think of a song, or an idea, but also be careful: songs can be written on paper. The paper itself is a thing, but the idea written on the paper that is the incorporeal thing.

60
Q

Why is it NB to distinguish between corporeal and incorporeal?

A

Well, the type of control will depend on whether it is corporeal or incorporeal. An incorporeal cannot be acquired by prescription, for instance.

61
Q

What are Singular/Composite things?

A

A horse, a stone and a brick are singular. A composite thing will be a thing that is made up of singular things to form a new identity, for example a bicycle or a car, or a brick wall. Singular things will lose their individuality in the case of composite things, and the composite thing will be regarded as a new thing.

A composite thing is NOT a collection of things. A collection of similar things will be a flock of sheep, while a collection of dissimilar things will be an estate, for example. The law can regard these things as “units” (think of a deceased estate), but it is made up of separate, singular things that retain their identity. The collection will only be treated as a unit for certain, specific reasons.

62
Q

What are the elements of composite things?

A

• Principle
A principle thing is an independent thing made up of various parts. A car is a good example. Land is always the principle thing.

• Accessory
An accessory thing can have a separate existence apart from the composite thing, but has lost its independence due it being physically joined to the principle thing. A gearbox is a good example.

• Auxiliary
Like an accessory thing, an auxiliary thing can exist independently from the composite thing, but due to it being economically dependent on the principle thing, it lost its independence. Senekal v Roodt is a good case to read in this regard. A key is a good example of an auxiliary thing.

• Fruits
The most obvious example is an apple from the tree, but civil fruits will include interest from an investment. As long as the fruit is attached to the principle thing, it is part of the principle thing (an accessory thing). Once it is separated from the principle thing, it is a principle thing in its own right.

63
Q

What are Movable/Immovable things?

A

Land and everything attached to it is immovable. Everything else is immovable.

64
Q

Why is it NB to distinguish between movable and immovable when it comes to acquisition?

A

Immovable property can be acquired through registration, while movable things are delivered.

65
Q

Why is it NB to be aware that incorporeal things can be classified as movable or immovable?

A

This is important, as it can play a role in the granting of security and the transfer of the property.

In short: all real rights over immovable property will be immovable incorporeal property when they function as the object of the right.

Real rights over movables will be movable incorporeal property when it is the object of a right.

Personal rights are always movable.

66
Q

Why is it NB to distinguish between Movable and Immovable?

A
  • Firstly, formalities require immovable property to be registered in order to be delivered.
  • Secondly, certain statutory requirements are only applicable to immovable property, such as that a contract for sale of land need to be in writing (Alienation of Land Act 68 of 1982).
  • Thirdly it can play a part in determining the law applicable in a dispute in terms of private international law.
  • Fourthly, if an minor’s immovable asset worth more than R100 000 must be alienated or encumbered, then the Master of the High Court must give permission.
  • Fifthly, when a judgment debt is executed, the Sherriff will first attach the movable property before it may move on to immovable property.
  • Sixthly, certain crimes can only be committed with regards to certain properties: one can steal only movables, and arson can only be committed with regards to immovable.
  • Lastly, and very importantly, with regards to real security: one can only pledge movable property.
67
Q

What can immovable property also be classified as?

A

It can also be classified as corporeal or incorporeal.

68
Q

What are examples of Incorporeal Immovable property?

A
  • A registered lease regarding mineral rights.
  • Registered long-term lease in respect of land.
  • Real and personal servitudes in respect of immovable things.
69
Q

What are examples of Corporeal Immovable property?

A
  • A sectional title unit.
  • Everything attached permanently to the land by means of building or planting.
  • A piece of land indicated on a map, diagram or general plan and registered in the deeds office.
70
Q

What are Replaceable/Irreplaceable or Fungible/Non-fungible things?

A

Things are fungible when they can be replaced with exactly the same kind of thing. For example, I can replace your textbook, even if it is not the same text book, with a similar text book. I can replace the flour I borrowed from you yesterday, with a new pack of flour.

I cannot, however, replace your handwritten notes (unless it was copied) or the Pierneef painting. The notes and the painting is therefore non-fungible

71
Q

Why is important to make a distinction between replaceable and irreplaceable things?

A
  • In terms of a contractual terms, if you promise to delivery “a horse”, it can be any horse, but if you promised to deliver an original Picasso painting, and you don’t deliver the original painting, it will be a breach of the contractual terms.
  • Secondly, in principle a pledge object cannot be replaced with a similar thing.
  • Thirdly, fungibles may changeownership in certain circumstances such as commitio or confusion.
  • Lastly, the courts might in some instances be more likely to order replacement of things when things are fungible, or grant remedies such as the mandament if the thing is fungible but destroyed.
72
Q

What are Consumable/Non-consumable things?

A

Consumable things can be used up or have their value diminished by ordinary use. Think of pencils, food, cigarettes, liquor.

Non-consumables like a car or an oven will be preserved in general, despite the use. Normal wear and tear does not make something consumable.

73
Q

Why is the distinction between Consumable and Non-consumable important?

A
  • When a consumable is loaned, lease or a usufruct given over it, then the duty to maintain is a duty to replace, in practice.
  • Secondly, if you consume a consumable thing, you become owner by consumption.
  • Lastly, money is regarded as a consumable. Important to remember.
74
Q

What are Divisible/Indivisible things?

A

If a thing can be divided it is divisible. Sounds simple, but in practice it property law it means that only when a thing can be divided without losing its essential characteristics when it is divided into smaller parts, then it is divisible. Think of a bag of sugar; a roll of fabric; a piece of land.

A car and a painting can be divided physically, but in terms of property law it will lose its nature and function, and is therefore indivisible.