Property Law 2016 - s3-ap-southeast-2.amazonaws.com€¦ · 3 (1) Possession..... 46 (1A) Legal...
Transcript of Property Law 2016 - s3-ap-southeast-2.amazonaws.com€¦ · 3 (1) Possession..... 46 (1A) Legal...
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PropertyLaw
2016
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Topic1.1:IntroductiontoProperty......................................................................13
MeaningofProperty........................................................................................13(a)Definitionaccordingtofeaturesofproperty................................................14Featuresofproperty(Blackstone)......................................................................14Featuresofproperty...........................................................................................17MillirrpumvNabalco(1971)...............................................................................17MabovStateofQld(2)......................................................................................18
(b)PropertydefinedwithreferencetoContent(Honore).................................18Bundleofstickmetaphor...................................................................................19
(c)Propertydefinedasarelationship...............................................................19YannervEaton....................................................................................................20LegalquestionandsubmissioninYanner...........................................................21DecisionofthecourtinYanner..........................................................................21
(d)Propertyasobjectofpubliclaw/humanright.............................................22Preliminaryfindings............................................................................................23
Justificationofproperty...................................................................................24SourcesofPropertylaw...................................................................................24
Topic1.2:NewFormsofProperty........................................................................26
Newformsofproperty.....................................................................................26Virtualproperty..................................................................................................26Resourcesoutsideofprivateownership............................................................26Naturalresources...............................................................................................27(a)Resourcesincapableofownership................................................................27(b)Resourcesincapableofownership................................................................29(c)Resourcesincapableofownership................................................................31
Topic1.3:Contractual&PropertyRights..............................................................33
ContractualRights............................................................................................33PropertyRight..................................................................................................33DistinctionbetweenLeaseandLicence..............................................................34LeaseandLicence...............................................................................................35Lease...............................................................................................................35Licence............................................................................................................35Differentiation................................................................................................35CowellvRosehillRacecourseCoLtd(HK).......................................................35
Summary.............................................................................................................36Classification.......................................................................................................37Classificationwithreferencetojurisdiction:......................................................38Classificationaccordingtonature......................................................................38Historicaldifferences..........................................................................................38Realproperty..................................................................................................38PersonalProperty...........................................................................................39Leases.............................................................................................................39
Summary..........................................................................................................40Topic1.4:AirRights,TDR&CarbonRights...........................................................42
Topic2.1:PossessionandTitle.............................................................................46
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(1)Possession...................................................................................................46(1A)LegalConsequencesofPossession............................................................47(1B)ScopeofPossessoryTitle..........................................................................48(1C)PossessoryTitleofPersonalProperty........................................................49FindersKeepersRule(CB2.12)àLOOKATFINDERSPRINCIPLEatbottomoftopic....................................................................................................................49WaverleyBoroughCouncilvFletcher.............................................................50
(1D)Enforceabilityofpossessorytitle..............................................................51(1E)Competitionbetweenpossessorytitleholders..........................................51(1F)Priorpossessorytitleandnativetitle.........................................................53(Mabo2).............................................................................................................53
(1G)Bailment(notthatimportantinourcontext)............................................53‘Seisin’.................................................................................................................55Importanceofpossession...................................................................................55
Questions.........................................................................................................56Summary:Finder’sPrinciple.............................................................................57
Topic2.2:Fixtures................................................................................................59
FIXTURESANSWERPLAN..................................................................................59Fixtures............................................................................................................60RelevanceoftheRule.......................................................................................61TwoTests............................................................................................................62(1)DegreeofAnnexation(startingpoint)......................................................62(2)ObjectofAnnexation................................................................................63Factors............................................................................................................64ElitestoneLtdvMorris(HL)UK.......................................................................65
Tenant’srighttoremove....................................................................................66Thirdparties.......................................................................................................67Statutoryprotection.......................................................................................70
FixturesExercise2.1.........................................................................................70Question2..........................................................................................................71
Topic3.1:AdversePossession..............................................................................72
PrincipleofLimitation......................................................................................72Example:JAPye(Oxford)vGraham(HL)............................................................72
MeaningofAdversePossession........................................................................73TitleHierarchy..................................................................................................74RationaleforAdversePossession.....................................................................74Requirements/Elements...................................................................................751)Factualcontrol:...............................................................................................753)Limitationperiod............................................................................................75ElementsinDepth..............................................................................................76(1)Factualcontrol...........................................................................................76(3)Limitationperiod.......................................................................................79
AdversePossession(Part2)..............................................................................81Continuousuninterruptedpossession..............................................................81KierfordRidgePtyLtdvWard.............................................................................81
AgainstwhichOwner.......................................................................................82
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Important:..........................................................................................................82GeneralPrinciple1.............................................................................................83
Expeditingadversepossessionperiodagainstfuturetitleholders....................83LimitationsofActionAct1958(Vic)s10(2)**OnlyforFutureTitleOwners/futureinterests...................................................................................................83GeneralPrinciple2.............................................................................................84CasebookExamplepg.166.............................................................................84
Adversepossessionagainstlesserinterest.......................................................85Crownland.......................................................................................................85AgainsttheCrown/statutorybodies.................................................................86
Interruptionofadversepossession...................................................................861.Assertionoftitle.............................................................................................862.Acknowledgmentoftitle:...............................................................................863.Abandonmentofpossession:.........................................................................87
DisabilityandFraud(extension).......................................................................87Itisimportanttoconsiderwhoisthepapertitleownerandwhoistheadversepossessor?Ifpapertitleownerisadisabledpersonthenthismightberelevant.Orifthe…isafraudsterthenthismightberelevant........................................87Disability.............................................................................................................87Fraud...................................................................................................................87Sections..............................................................................................................87
Consequencesofadversepossession...............................................................88ConsequencesofadversepossessionunderTorrens.........................................88ConsequencesofadversepossessionunderTorrens.........................................89
Proceduralaspects...........................................................................................89Adversepossessionandhumanrights..............................................................89Answerplan(CaseBookpg.204)......................................................................90
Topic4:DoctrineofTenure..................................................................................93
History.............................................................................................................93TenureDefinitions............................................................................................93Doctrineoftenure............................................................................................94TenureReform.................................................................................................94DoctrineofTenuredistinguishedfromallodialtitle(Europe)anddoctrineofestates.............................................................................................................95PrinciplesofSettlement...................................................................................95Settlement..........................................................................................................96
AdoptionofFeudalTenureinAustralia............................................................96FeudaltenureAustralia......................................................................................97
Scotland...........................................................................................................97DoctrineofTenure:NativeTitle...........................................................................99
NativeTitle.......................................................................................................99MabovQld(1)....................................................................................................99Mabo(2)...........................................................................................................100(a)IndigenousPossession.............................................................................100(b)Rejectionofthefeudaltenuresystem....................................................101(c)Rejectionofenlargedterranulliusdoctrine............................................101
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Radicaltitle.......................................................................................................102Summary........................................................................................................103Remainingfeaturesofdoctrineoftenuretoday..............................................103
NativeTitleDefinition,Nature&Establishment.............................................105NATIVETITLESUMMARY................................................................................105NativeTitleDefinition....................................................................................109
ExamplesofNativeTitle...............................................................................110MabovQld1................................................................................................110MabovQld2................................................................................................111
Radicaltitle–thetoolthecourtresortedto....................................................112ExtinguishmentofNativeTitle.........................................................................113
NatureofNativeTitle.....................................................................................113FeaturesofNativeTitle..................................................................................114DynamicNature–canbeaproblem................................................................115EstablishingNativetitle................................................................................115YortaAboriginalCommunityvVictoriaàanexplanationofrequirementsofNTAct...........................................................................................................116(X)BennellvStateofWA[2006]FCA1243–frozenintime.......................118YannervEaton..............................................................................................119
ApproachingaQuestion.................................................................................119SummaryofQuestionsifyouhaveaNativeTitleinterestyouwanttoprove.120
NativeTitleExtinguishment,Expiry&Act.......................................................121NativeTitle.....................................................................................................121TerminationofNativetitle.............................................................................122Extinguishment..............................................................................................122FormsofExtinguishment..................................................................................122
Non-Extinguishment.......................................................................................123LegislativePowerswithregardtoNativeTitle................................................123Constraintsonlegislativepowerstoextinguishordiminishnativetitle:.........124SusceptibletoDestruction/Termination..........................................................124InconsistentGrant(Mabo2)............................................................................124FejovCommonwealth..................................................................................125WikPeoplevQueensland–hadfarreachingconsequences........................125WAvWard....................................................................................................128WAvBrown(HCA)[notinStudyGuideortextbook]–illustrateshowtoapplyprinciples......................................................................................................129
NativeTitleAct1993......................................................................................130RecognitionofNT...........................................................................................130DeterminationofNativeTitle(s225)...............................................................131PublicRegisters.................................................................................................131
Acts................................................................................................................131Validationof:PastActs..................................................................................131IntermediateActs-between1Jan1994andWik(1996)................................132FutureActs(adoptionofNTAonwardscuttingouttheintermediateacts).....133
Summary........................................................................................................134Topic6.1:DoctrineofEstates.............................................................................135
ESTATESANSWERPLAN.................................................................................135
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DoctrineofEstates.........................................................................................138Estates...........................................................................................................138FreeholdEstates...............................................................................................140Seisin.............................................................................................................140
FeeSimple........................................................................................................140ToCreateaFeeSimple.................................................................................140ModernMeaningofaFeeSimple................................................................141
LifeEstate.........................................................................................................142GrantingaLifeEstate...................................................................................142
FutureInterest..................................................................................................143FormsofFutureInterests.............................................................................144Summary.......................................................................................................144
DoctrineofEquitableWaste.............................................................................144StatutoryRequirementsforCreationofanEstate:Deed................................145Writing..............................................................................................................145NemoDatQuodNonHabetRule.....................................................................146Examples:......................................................................................................146
VestedandContingentInterests....................................................................1473CategoriesofInterest....................................................................................1483)DeterminableInterest..............................................................................148
Distinction.........................................................................................................150ImportanceofDistinction.............................................................................150ZapletalvWright–dealswiththedistinction..............................................150
Summary........................................................................................................151DoctrineofEstatesRemainders&Reversions................................................152FutureInterests..............................................................................................152(A)VestedremainderInterests:.......................................................................152
(B)ContingentLegalRemainderInterest........................................................1524SetofRules................................................................................................153
Trust..............................................................................................................155(6.3)RestrictionsontheRighttoAlienate......................................................155RestraintsagainstAlienability..........................................................................156Policy................................................................................................................156HallvBust.....................................................................................................157NullagineInvestmentsPtyLtdvWAClubInc...............................................157EltonvCavill.................................................................................................158JohnNitschkeNomineesPtyLtdvHahndorfGolfClubInc...........................159
Conclusion.....................................................................................................159Questions.......................................................................................................160
Topic7.1:Leases................................................................................................163
LEASESANSWERPLAN....................................................................................163Leases...............................................................................................................165
HistoricalDevelopment..................................................................................166CharacterofaLease.......................................................................................166EssentialElements..........................................................................................167DifferentFormsofLeases...............................................................................167(1)FixedTermLease–e.g.1year(starts1/1/16ends31/12/16)...................168
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(2)PeriodicTenancy–e.g.monthtomonthdependantonrentpayment......168(3)TenancyatWill............................................................................................168(4)TenancyatSufferance.................................................................................169
RequirementsforCreationofaLease.............................................................169(a)Statutoryformalities.................................................................................170(b)ExclusivePossession.................................................................................170
RadaichvSmith(1959)HighCourt...............................................................171StreetvMountford[1985]AC809................................................................171BrutonvLondonQuadrantHousingTrust(HL)–thisdecisionillustratesincorrectprinciples.......................................................................................172
(C)CertaininDuration....................................................................................173Examples.......................................................................................................174
(5)EquitableLease...........................................................................................174(a)The‘WalshvLonsdale’equitablelease...................................................175(b)Tenancybyestoppel...............................................................................175
(6)TenancybyEstoppel...................................................................................176RighttoAssignorSub-Lease...........................................................................177AssignmentandSublease.................................................................................178Assignment...................................................................................................178Sublease........................................................................................................178
PrivityofContract–partiestoacontract.......................................................178PrivityofEstate..............................................................................................179RelevanceofdistinctionbetweenPrivityofContractandPrivityofEstate.....179
LeasesRights,Duties,TerminationandRemedies..........................................181UsualCovenants(UsualTermsinaCT)...........................................................181ImpliedCommonLawCovenants...................................................................181
TestofImplication........................................................................................181CommonLawDuties......................................................................................181(1)DutyofReasonableRepairbyLandlord......................................................181(2)DutytoExerciseReasonableCarebyLandlord...........................................182DutyofCare..................................................................................................182DifferentFormulationsofDutyofCare........................................................183
(3)ImpliedCovenanttoProvideTenantwithQuietPossession......................183(4)ImpliedCovenantofNon-DerogationfromGrantbyLandlord..................184(5)ImpliedCovenanttoUsePremisesinaTenant-LikeMannerbyTenant....184(6)ImpliedDutybyTenantnottoCommitWaste...........................................184(7)ImpliedDutyofTenanttoYieldUpPossessionattheEndofLease...........185
ExpressContractualDuties.............................................................................185TerminationofLease......................................................................................186Remedies.......................................................................................................186Termination:Forfeiture....................................................................................187ProgressiveMailingHousevTabaliPtyLtd..................................................188
Repudiation......................................................................................................188ChanvCresdon.............................................................................................189
HybridNatureofaLease................................................................................189Tenant’sFixtures............................................................................................190ReviewQuestions...........................................................................................190
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Topic8.1:EquitableInterests.............................................................................192
HistoricalBackground....................................................................................192EquitableInterests.........................................................................................193DevelopmentofEquitableInterest.................................................................194The“Use”(theTrust)......................................................................................195
DKLRHoldingsCoPtyLtdvCommissionerofStampDuties.........................196InterestofBeneficiary....................................................................................196TypesofTrusts...............................................................................................197ExpressTrust....................................................................................................198DutiesofTrustees.........................................................................................199RightsofBeneficiaries..................................................................................199
ResultingTrust..................................................................................................199ConstructiveTrust............................................................................................203MuschinksivDodds......................................................................................203BaumgartnervBaumgartner(HC)................................................................204
RequirementsforRemedialConstructiveTrust...............................................204Ifsomeonehascreatedanimpressionthatacertainstateofaffairsexisted,andsomeoneelseactedtohisdetriment,thecreatoroftheimpressioncansometimesbeestopped,andaconstructivetrustcanbecreated..............205GiumellivGiumelli–.....................................................................................205Ø anexampleeventhoughHCdidn’trecogniseatrustbutfactsillustrateapossiblescenarioorexamplewherewecanconstrueatrustwithreferencetoestoppel....................................................................................................205
InstitutionalConstructiveTrust........................................................................206àInstitutionalConstructiveTrust:SaleßIMPORTANT(commonsituation) 206àTanwarEnterprisesPtyLtdvCauchi........................................................207
EquitableInterests,FormalityRequirementsandMereEquities.....................209OtherEquitableInterestsinLand...................................................................209FormalityRequirementsforEquitableInterests.............................................212Pre-ConditionsforcreatinganExpressTrust...................................................212Summaryofformalityrequirements................................................................213
DoctrineofPartPerformance.........................................................................214Requirements...................................................................................................214
EnforcementofEquitableInterests................................................................215EquitableRemedies..........................................................................................215WestdeutscheLandesbankGirozentralevIslingtonLondonBoroughCouncil......................................................................................................................215
MereEquities(subcategoryofequitableinterests).........................................215WhatisaMereEquity?................................................................................216Sometimesamereequityhasproprietaryfeatures,sometimesithaspersonalfeatures:.......................................................................................................216ProprietaryCharacter...................................................................................216PersonalNature............................................................................................217Mereequityinacourtcase:.........................................................................217LatecInvestmentsLtdvHotelTerrigalPtyLtd..............................................217RutholPtyLtdvMills....................................................................................218
HierarchyofInterests.....................................................................................219
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Questions.......................................................................................................219Topic9.1:Easements.........................................................................................222
NaturalRights................................................................................................222NatureofEasements......................................................................................222SubstantiveRequirementsforaValidEasement............................................223Elements...........................................................................................................2231)RequirementofDominantandServientTenement.................................2242.EasementMustAccommodateDominantTenement..............................2243.DominantandServientOwnersmustbedifferent...................................2254.RightmustbeCapableofFormingSubjectMatterofaGrant.................226
CommonEasements.......................................................................................228CreationofEasements...................................................................................228DistinctionbetweenGrantsandReservations.................................................229Grant(wherethenewpurchaserrequirestheeasement)...........................229Reservation(wheretheseller/ownerstillrequiresaccessandthereforeaneasement).....................................................................................................229
1.ExpressGrantandReservation...................................................................229EquitableEasement......................................................................................230
2(a).ImpliedGrant.........................................................................................230Presumptions................................................................................................231
ContinuousandApparentEasements..............................................................233Non-DerogationPrinciple.................................................................................233
2(b).Necessity................................................................................................2342(c).CommonIntentionorConstruction........................................................235CommonIntention:..........................................................................................235Construction.....................................................................................................236
3.EasementbyPrescription...........................................................................237DifferencetoAdversePossession....................................................................238Timing...............................................................................................................238TorrensSystem–notapplicable......................................................................238
Summary........................................................................................................2394.EasementbyStatute...................................................................................239EasementsModification,Extinguishment&ProfitaPrendre..........................240ConstructionofEasements.............................................................................240Remedies.......................................................................................................241ModificationorExtinguishmentofEasements................................................242ExpressRelease................................................................................................242UnityofTitle.....................................................................................................242ChangesinCircumstances................................................................................243ChangeofUse...................................................................................................243AbandonmentbyNon-User..............................................................................244
ImpactofAbandonmentonRegistration........................................................246EasementofProfitÀPrende(RightofTaking)................................................246RightisqualifiedtonaturalproduceàFructusNaturales;Industrialis..........246EnterLand.........................................................................................................246RentCharge......................................................................................................247
Questions.......................................................................................................247
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Topic10.1:RestrictiveCovenants.......................................................................251
Summary/Walkthrough..................................................................................251Nature............................................................................................................252IssuesExample:.................................................................................................253
Definition.......................................................................................................254AusterberryvCorporationofOldham..........................................................254AusterberryPrinciple....................................................................................255
(2)PassingofBenefitofaRestrictiveCovenantUnderCommonLaw.............256Requirements(beforethiscantakeplace):.....................................................256TouchandConcern&IntentiontoBind.......................................................257
(3)PassingoftheBurdenofaRestrictiveCovenantinEquity.........................258ExceptionDevelopedinEquity.........................................................................258PassingofBurdeninEquity..............................................................................259AttachingBurdenofCovenantinEquity:Burden.............................................2611)RestrictiveRatherThanPositiveinNature...............................................2612);3)CovenantMustBenefitIdentifiableLand............................................2614);5)IntentiontoImposeBurdenUponaKnowingSuccessorinTitle........262
TorrensLand.....................................................................................................263Examples...........................................................................................................263
(4)PassingofBenefitofCovenantinEquity...................................................264RestrictiveCovenantsAssignment&BuildingSchemes..................................265AssignmentofBenefitofCovenantatLaw.....................................................265StatutoryRequirements(s.134PLA)................................................................266
AssignmentinEquity......................................................................................266Summary...........................................................................................................266
RestrictiveCovenants:BuildingSchemes........................................................266DoctrineofBuildingSchemes...........................................................................267SmallvOliver&Saunders(Dev)PtyLtd........................................................268
ModificationandExtinguishmentofRestrictiveCovenants............................269ModificationandExtinguishmentofRestrictiveCovenantsbyStatute:S84PLA(Vic)...................................................................................................................269Section84formulatedinStanhillPtyLtdvJackson.....................................270
RemediesforInfringement.............................................................................271Topic11:Mortgages...........................................................................................273
SecuredLoan..................................................................................................273TypesofMortgages........................................................................................273PossessorySecurities......................................................................................274OldTitleMortgage(CLandoldAussystem)...................................................275Redemption...................................................................................................276TorrensMortgages.........................................................................................277ContractualFormalities..................................................................................278EquitableMortgages......................................................................................2781)FormalMortgageOverEquitableTitle.........................................................2792)FormalMortgageImproperlyExecuted.......................................................2793)SpecificallyEnforceableAgreementtoMortgage........................................2794)MortgagebyDepositofTitleDeeds/documents.........................................280
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Rightsoftheparties.......................................................................................282RightsofMortgagor(Debtor).........................................................................282RightsofMortgagor:(1)EquityofRedemption...............................................282OldTitleMortgage........................................................................................282EquityofRedemption:..................................................................................283ClogsOnEquityofRedemption....................................................................283
RightsofMortgagor:(2)Possession.................................................................284RightsofMortgager:(3)Leases........................................................................285
RightsoftheMortgagee(Bank/Creditor).......................................................286RightsofMortgagee:(1)RighttoSueforLoanMoney....................................286RightofMortgagee:(2)RighttoAlienatethesecurityinterest.......................286RightofMortgagee:(3)RighttoPossession....................................................287RightoftheMortgagee:(4)Foreclosure..........................................................287RightoftheMortgagee:(5)Mortgagee’sPowerofSale..................................288MannerinwhichsalemustbeConducted(Vic)...........................................289
DischargeofMortgage...................................................................................292PropertyExam–RevisionLecture......................................................................295
ExamStructure.................................................................................................295Hints:................................................................................................................295ExamPaper1;2015..........................................................................................295
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Topic 1.1: Introduction to Property
Ø MeaningoftheconceptofpropertyØ JustificationofprivatepropertyØ SourcesofPropertylaw
MeaningofProperty• Propertymeansdifferentthingstodifferentpeopleandtheconceptisused
indifferentcontexts• Threebasicmeanings:
1. Thingspeopleown2. Thingsthemselves
• Objectsthemselves• Land(realproperty)
• Fixtures(fixedtohouse&land)• Chattels(Goods)(personalproperty)• ChattelsReal
• Bookcanbeaproperty,butownershiporrighttotheobjectisanotherthing.
3. Rightswhichpeoplehavetothings• Propertyright:righttolandorgoods(tobedistinguished
from)• Personalright:righttoanotherpersonintermsofacontract
• Propertyisaplatformforrestofprivatelaw(Smith)DefiningPropertyLaw
• Propertycanbedefined:(a) withreferencetoitsfeatures
a. certaincharacteristicsallowsthethingtobeclassified(b) ordistinguishingitfromapersonalright
a. aspropertyrightsarenotcontractualrights(c) withreferencetoitscontent
a. whatisincludedintheideaofproperty(d) asarelationship
a. abroaderapproachbyseeingpropertyasarelationshipbetweenthepersonsandtheobjectanddifferentpersons
(e) asanobjectofpubliclaw/humanrighta. E.g.BillofRightsdoesnotallowyoutbedeprivedofyour
propertywithoutdueprocessoflawb. Noprivateownershipofland/river/mountainsinChina,it
isallgovernmentowned(Communism),whereasinAustraliaifyoubuyahouseyouownthehouseitself,thelandunderneath,thewateretc.
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OwningyourBodyandLife
• Lifeo NotrecognisedinAustraliaforeuthanasiao Auto-Icon–namingaphilosophersbodyandgivinghisbodytoa
museum• BodyParts
o RecognisableinAustralianlawtodonateorgans(a)DefinitionaccordingtofeaturesofpropertyBlackstone’sCommonlawdefinition:“Thereisnothingwhichsogenerallystrikestheimaginationandengagestheaffectionsofmankind,astherightofproperty;orthatsoleanddespoticdominionwhichonemanclaimsandexercisesovertheexternalthingsoftheworld,intotalexclusionoftherightofanyotherindividualintheuniverse.”(BlackstoneCommentariesontheLawofEngland)(CB3)
Featuresofproperty(Blackstone)ThefollowingfeaturescanbededucedfromBlackstone’sdefinition:
(a)Dominion(righttouseobject)• Controlexercisedbyapersonoveranobject• Dominiondenotessomelegallyauthorisedpower• Powerconcentratedinaspecificperson(s)(“sole”oneperson):
• Righttoabicycle(propertyright)vsrightofaccesstolibrary(personalright)
• Indigenousrightsconcentratedinclan/group• Somepoweroverthatbook
(b)Thingsoftheworld(External)• Thenotionofa‘thing’• Outsideofaperson
o Thehumancannotbetheobjectorproperty§ E.g.physicalproperty(land,chattels),orintangible
(intellectualproperty,shares,trademarksetc.)• Thingsmustbeseparateandapartfromourselves• Importanceofobjectinpropertyrelationship(Lametti)
(c)Externalised• Demarcationofproperty/boundaries
o E.g.ahousehasaboundarythatisidentifiable.• Thingsthatareunequalbetweenmen:
“Thefirstmanwho,havingfencedinapieceofland,said‘Thisismine,’andfoundpeoplenaïveenoughtobelievehim,thatmanwasthetruefounderofcivilsociety.Fromhowmanycrimes,wars,andmurders,fromhowmanyhorrorsandmisfortunesmightnotanyonehavesavedmankind,bypullingupthestakes,orfillinguptheditch,andcryingtohisfellows:‘Bewareoflisteningtothisimpostor;you
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areundoneifyouonceforgetthatthefruitsoftheearthbelongtousall,andtheearthitselftonobody’.Jean-JacquesRousseau(DiscourseontheOriginandBasisofInequalityAmongMen)
(d)Exclusion• Toexcludeothersfrom:
(a) enjoyingsamerights;or§ Preventingsomeonefromenjoyingthesamerightsor
havingaccessfromwhatyouhave.(b) interferingwiththeexerciseofrights
§ Exclusion§ Notphysicalbutthelawrecognisesyouentitledtoexclude
everyoneelse,andthispowerwillbeenforcedifbroughttocourt.
• Statecanenforceexclusion(matteroflawnotpower)• Exclusionservestheuseinterestsofproperty(Smith)• Propertyconsistsprimarilyincontroloveraccess–excludable-(Gray)
o Controllingaccesstothatproperty–excludabilityisanimportantfeatureofproperty.
o Feasibletoregulateaccessbyexcludingotherpeople.o Excludableifitisfeasibleforapersontoexerciseregulatory
controloveraccessofstrangerstobenefitsofresource(Gray)• Criticism:
o Notanabsoluteconcept(“total”)–onemaynotinterferewithrightsofothersorpublicproperty,healthandsafety
§ Notatotalconcepttoexcludeeveryoneallthetimeforever.
o E.g.therightsofsomeoneelseo Nottheonlyrightinherentinproperty(thereareother
associatedrights)o Exclusionisnotacharacteristicofindigenousrelationship:
connectionwithlandratherthanexclusion§ Mabocase
(e)Transferabilityofright• Propertyrightsaresaidtobetransferable/assignableandthisisan
importantfeature.• Criticism:
o Toowide.Mostrightsaretransferable(includingpersonalrights)o Notauniquefeatureofpropertyasyoucanalsoassignrightina
contracto Somepropertyrightsarenottransferrableorassignable(seenin
CTclause)o Somepropertyrightsarenotassignable(non-assignability
residentiallease)o Nativetitlerightsarenottransferable(Millirrpum)
§ Theexception§ Onlytransferrablefromgenerationtogeneration
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(f)Enforceabilityofrightagainstotherpersons• Rightinrem(operatesagainsttheworld)isapropertyright
o Enforceableagainstalargeandindefiniteclassofpeopleo Continuedexistenceofathingisrequiredo Ratheraconsequenceorfeatureofapropertyrightthan
identificationtool• Criticism
o Aconsequenceratherthanafeatureo Mustacceptthisapproachisuniversallyaccepted.
Universalacceptanceofinremoperationofapropertyright:“Arealright,suchasownership,isaseveryfirstyearlawstudentknows,enforceableagainstthewholeworld.”(XZSIndustriesvAFDreyer(Pty)Ltd(2004(4)SA186(W)196F/G)
• Rightinpersonam(enforceable@person)–personalrighto Enforceableagainstspecificperson(partiesprivytorelationship)
§ Notdependantonexistenceofthingo Basisfordivisionbetweenpersonalrightsandpropertyrights
(g)Value• Marketvalue• Notnecessarycharacteristicofproperty• Sentimentalvaluejustbecauseofnomarketvalue• Negativevalue?(toxicchemicals)• Personalrightsalsohavemarketvalue
(h)Legalrecognition• Canarguethatapropertyrightisuselesswithoutbeingenforceable.• Propertyrightsmustberecognisedandlegallyenforceable.• ‘Propertyandlawareborntogetheranddietogether.Beforelawswere
madetherewasnoproperty.Takeawaythelawsandpropertyceases’(Bentham)
• Itisalegalconstruct:thereisnopropertyinabsenceofalegalsystem• Thisisnotuniquetopropertyrights• Legalidentityofpropertydependsonlegalsysteminwhichitisenforced:
Commonlaw,Equityorstatute• Otherrightsarealsorecognisedbylaw• Aboriginalrightsrecognisedasproprietarybecausethecommonlawand
statutoryframeworkrecognisethem• Aboriginalrightsonlyrecognisedifrightshavetheirorigininpre-sovereignty
lawandcustom(YortaYorta)• Pre-sovereigntyrightsmayencumbertitleofCrownuponcolonisation• Post-colonisationaboriginalrightsaredestroyed• Onemustnotoverstateessentialcharacteristicsofpropertytoidentify
property(seeforexampleMillirpumdecision)
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Featuresofproperty• Useandenjoymentofland/goods• Excludability• Enforceability• Externaltohumans• Alienability• Value(economic,sentimentalornegative?)• Legalconstruct
• Identifiable(boundaries)• Definable• Controloveraccess
• ProblemExample:
o Takingcellsfromahuman.ConfrontedbyCourt.Mustexplainthenewproductisapropertyornot,andcheckagainstthesefeaturesofitispropertyornot.
• Criticismoffeaturesapproacho Onemustnotoverstateessentialcharacteristicsofpropertyto
identifyproperty(Millirpumdecision)
MillirrpumvNabalco(1971)• NotrecognisedbutlaterrecognisedinMabo.
o Illustratesimportanceinlookingthroughmirrorsofcommonlawandtryingtoidentifyifsomethingisproperty.
• Facts:o Claimthataminingcompanywasinterferingwithrighttoperform
ritualceremonies• Issue:WhetherAboriginalcustomaryrightsoverlandqualifiedas‘property’
o Judgefollowedcharacteristicsandwhethernativetitlemetthesecharacteristics.
o ‘Ithinkthatpropertyinitsmanyforms,generallyimpliestherighttouseorenjoy,therighttoexcludeothers,andtherighttoalienate.Idonotsaythatalltheserightsmustco-existbeforetherecanbeproprietaryinterests,ordenythateachofthemmaybesubjecttoqualifications.’(BlackburnJ)
o Accordingtothecourtthefollowingincidentsofpropertywereabsent:
§ Rightofclanextendedtoperformanceofritualsonly(nouseandenjoyment);
§ Norighttoexcludeothermembersorotherclans(notexclusionary);
§ NorighttoalienatethelandbecauseAboriginalcustomprohibitedtransferofrights(inalienable)
• Held:
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o AbsenceofpropertyrightstolandinAnglo-Australianmeaningoftheterm
• Criticism:o Rightrelatedtolandtowhichtheywereconnectedo Hadpowertoseverconnectionwithlandbymovingawayo Righttoperformceremoniescanbeapropertyright(similarand
comparetoeasement)o Themerefactthesefeatureswerenotpresentdoesnotmeanitwas
notapropertyinterest
MabovStateofQld(2)• Nativetitlerecognisedbythecommonlawdespitethefactthatitdidnot
fittheWesterndefinitionofpropertyo Buthascertainspecialfeatures
• Nativetitle:interestsandrightsofindigenousinhabitantsinland,whethercommunal,grouporindividual,possessedunderthetraditionallawsacknowledgedbyandthetraditionalcustomsobservedbyindigenousinhabitants(BrennanJ)(Vides223NTA(CB16)
• Nativetitle(specialformofproperty)hasitsownspecialfeatures:o Nativetitleisinalienable(gentogen);o Nottransferabletothirdparties(gentogen)(transferredfrom
generationtogenerationortoCrownitoitspre-emptiveright);o Nativetitleisvulnerable,asitcanbeextinguishedbytheCrown’s
exerciseofradicaltitleo Traditionalbeliefofbelongingtoland
• Despitelimitations,Bartlettstillarguesitisapropertyrightinasensethatif
Federalgovttakestherightsaway,youcanreceivecompensationect..• Nativetitleisproprietary(Bartlett):
o Claimforcompensation(s51(xxxi)CA1901(Cth))o Exclusionarybecauseofavailabilityofequitableandcommonlaw
remedieso BurdenuponCrowntitle
(b)PropertydefinedwithreferencetoContent(Honore)• Forexample
o ContentinsidetheCokeBottle• Propertyisabundleofrights• Propertyincludefollowingelements(formingbasisof)property:
1. Righttopossess(exclusivephysicalcontrol)2. Righttouse(useandenjoyment)3. Righttomanage(determinewhomayuseandhow)4. Righttoincome(righttovaluegeneratedbything)5. Righttocapital(righttoconsume,wasteanddestroy)6. Righttosecurity(righttoexcludeothers)7. Poweroftransmissibility(righttotransfer)8. Absenceofaterm:indefiniterighttoenjoy,doesnotterminate
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9. Prohibitionofharmfuluse(refrainfrominterfering)10. Liabilitytoexecution(liabilityforsatisfactionofdebt)11. Residuaryrights(rightswhichgovernsentitlementsofothers)
Rightstakeninabundleandstatesas‘property’.
Bundleofstickmetaphor• Itconfersupontheholdera‘bundleofrights’whichreferstotheaggregate
ofrightsassociatedwithpropertyenforcemento Butcansplitownerinlegalandequitableinterestovertheproperty.
• Providesanaccuratedescriptionofwhomcandowhattowhominarelationship
• Problemswith“bundleofsticks”metaphor:o Abstracttreatmentofproperty,eachandeverycaselookedatinthe
samebundleandnotamodernwaytoobserveito Definesaccordingtoconstituentpartsandtreateachparcelofland
similaro Problematicwithpropertisationofnaturalresourceso Attempttoanalyselegalrelationshiptosmallestatoms(Smith)o Moreofadescriptionthanatheory(Smith)
• “Bundleofsticks”metaphorfocusesonthecollectionofinterrelatedrightsratherthanasingledefinednotion
(c)PropertydefinedasarelationshipPropertyisperceivednotasarightoveranobjectbutrighttoarelationship.
• Laylanguage:specifictangibleobjecto Nottherighttothebookbuttherelationship(Hohfeld)
• HohfeldrejectedBlackstone’sideaofpropertyasanabsoluterightandcharacterisationasaphysicalthing
o Itisanabsoluteright(notalwaystruethough),andthatpropertymaintainsarelationship.
• Theownerofthebookhastherighttotheobject,butcanexpectyounottointerferewiththeexercisableright.
• Allrightsareconcernedwithrelationshipsandnotthings(Hohfeld)• Ratherarelationshipbetweenanindividualandanobject/rightratherthan
theobject/rightitself(relational)o Propertyisarelationalfocusratherthanobjectfocus.
• Thingsformthebackdropofrelationships(Smith)• MoreEuropeanoutlook:
Arelationshipentails:(a)relationshipbetweenpropertyholderandthing;and(b)relationshipbetweenpropertyholderandthirdparties(exclusion/enforceability)
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Thefirstrelationshipinvolvestheuseandenjoymentoftheobject,theotherrelationshipinvolvestheelementofexcludability(animportantfeature).
• Relationshipcanbebrokendownintopowers,duties,rightsandimmunities• Propertyisan“exclusiveandprivaterelationship,whichanindividualhas
withanobjectorresourceswhichisenforceableagainsttherestoftheworld.”(Hepburn1stedCB7)
o SoundslikethewordsofBlackstone
YannervEatonPropertyisinvestigatedbytheHighCourt
Facts:• Argued:huntingofcrocodilesamountedtoanexerciseofnativetitlerights
protectedbyNativeTitleActandtheConstitutiono Maintainedaninterestthroughtheirtraditionallawsandcustomsto
catchcrocodilesforceremonialpurposes.• MagistratedecidedtheyhadaNativeTitleinterestandentitledtoexerciseit.
o HuntingofcrocodilesisintermsofaNativeTitleright(Maborecognised).
Appeal:• Itwentonappeal.QueenslandarguedtheConservationActs7.• Counterargument:HuntingrightsextinguishedbyFCA• S7(1)oftheFaunaConservationAct1974(Qld):
“Allfauna,savefaunatakenorkeptotherwisethanincontraventionofthisAct,duringanopenseasonwithrespecttothatfauna,isthepropertyoftheCrownandundertheControloftheFaunaAuthority”.
• Issues:o Meaningofs7(1)FCAanditsprovisionthatsomefaunaisthe
propertyofCrown• Fauna:bird/mammalindigenoustoAustralia• PropertyoverthatmammalvestedintheCrown.
o Didvestingof“property”createrightsinconsistentwithrightsofhunters(andextinguishedrights)?
• PropertyasdefinedinYanner“Theword‘property’isoftenusedtorefertosomethingthatbelongstoanother.ButintheFaunaAct,aselsewhereinthelaw,‘property’doesnotrefertoathing;Itisadescriptionofalegalrelationshipwithathing.Itreferstoadegreeofpowerthatisrecognisedinlawaspowerpermissiblyexercisedoverthething.Theconceptof‘property’maybeillusive.Usuallyitistreatedasa‘bundleofrights’.Buteventhismayhaveitslimitsasananalyticaltooloraccuratedescription,anditmaybe,asProfessorGrayhassaid,thatthe‘ultimatefactaboutpropertyisthatitdoesnotreallyexist:itisamereillusion.’”perGleesonCJ(CB13).
o Gray–thatpropertydoesn’texistanditisanillusion.Featuresofproperty(Yanner)
• Falsethinkingthatpropertyisathing
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• Ratheralegallyendorsedconcentrationofpoweroverthingsandresources• Propertyconsistsincontroloveraccess(Gray)• Propertyrelationshipisnota‘monolithicnotionofstandardcontentand
invariableintensity’• Comprehensivetermdescribingalloranyofdifferentkindsofrelationships
betweenpersonandsubjectmatter• Thefactthatthetermissocomprehensivepresentstheproblem,notthe
answertoit
LegalquestionandsubmissioninYanner1. WhatinterestinfaunawasvestedintheCrownwhentheFauna
ConservationActprovidedthatsomefaunawas“thepropertyoftheCrownunderthecontroloftheFaunaauthority”?o QLDargueditisfullandcomprehensiveownership.Itisnotnarrow.
ThereasonforarguingthisisbecauseifastatuteisinconsistentwithNativetitle,itwillextinguishtheNativeTitle.Ifitisnarrower,thenitcanoperatesidebyside.
2. ItwassubmittedthattheFaunaActgavefullbeneficialorabsoluteownershipofthefaunatotheCrown
3. Submissionwasfoundedonnotionthatpropertyisthewidestofallterms
DecisionofthecourtinYanner• SeveralreasonswhyCrown‘property’isnotaccuratelydescribedasfull
beneficialorabsoluteownership:1. DifficultytoidentifywhatfaunaisownedbyCrown2. Meaningoffullandbeneficialownershipofwildanimals?
• Wildanimalsatcommonlaw:limitedpropertyrights.Itisnotacompletepower.Ifyoucapturedit,itisyourownershipright,ifitisescapeditisnow.
• PropertyinActcannotbeequatedtopropertyofdomesticatedanimals
• Ownershipconnotesrighttohaveanddisposeofpossession(faunaoutsidepossessionanddisposition)
3. FaunaActsuggeststhatpropertyinfaunacannotbeequatedwithpropertyofadomesticatedanimal
4. ReasonsforvestingfaunainCrown:desirabilitytoprovideforsomevestingtocreateroyaltysystem
DecisioninYanner(continued)
• Vestingofsomeformofpropertywasdesired
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• Courtsaidthattheterm‘property’doesnotnecessarilymeanfull,exclusiveorbeneficialownership
• Itisvestedbystatute,andexpressedinalegalshorthandinthefacttheStatehaspowertoregulateandexploitcertainresources.
• PropertyvestedinFCA:aggregateofvariousrightsofcontrolbyExecutivethatthelegislationcreated:
1. Rightstolimitwhatfaunamightbetakenandhowitmightbetaken;2. Rightstopossessionoffauna;and3. Rightstoreceiveroyaltyinrespectoffaunathatwastaken
• TheCourtfoundthatthiswassomethinglessthanfullbeneficialownership.o Comment:Stateholdsfaunainsenseofimperium(andnotinsenseof
dominium):guardianshipofresources(Pound)§ Itisholdingitasanimperialpower.Theycanregulateitbut
doesnotownit.
• Nativetitleinterest(itos223NativeTitleAct):o Huntingintermsofthetraditionalcustomsandlawsoftheclano Bythoselawsandcustomstheclanhadalinktolando UntilpassingofFCArights/interestswererecognisedbycommonlaw
• Principle:o NTisextinguishedbycreationofinconsistentrightso IfyouhaveaNativetitleinterestinconsistentwithastatutoryintrest
itisextinguished.Ifitisn’t,itcancontinuetoeexist.• Regulatingthewayinwhichinterestmaybeexercisedisnotinconsistent
withcontinuedexistenceofNT
• EffectofFCA:establisharegimeforbiddingthetakingorkeepingoffaunaexceptpursuanttoalicencegrantedbyAct
• Regulatingaspectsofrelationshipwithlandbut:o DoesnotseverconnectionofAboriginalpeoplewithland;ando IsnotinconsistentwithcontinuedexistenceofNTinterests.
• TheFCA,withreferencetoNTAandConstitution,didnotprohibitorrestrictnativetitleholderfromhuntingcrocodilesforpersonalornon-commercial/communalneeds
• Held:Thus,theFCAdidnotextinguishNTinterests.
• Ifpropertywasabroadconcept,itwouldhaveextinguishednativetitleinterest,ifitwasnarrowitwouldnothaveextinguishednativetitleinterest.
(d)Propertyasobjectofpubliclaw/humanright
• “Propertyistheinstitutionbymeansofwhichallsocietiesregulatesaccesstomaterialresourcesorthings”(Sackville&NeaveAustralianPropertylaw1)
• USABillofrightsexample:“Nopersonshallbe.…deprivedof…property,withoutdueprocessoflaw…norshallprivatepropertybetakenforpublicuse,withoutjustcompensation…”
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(5thAmendmentoftheConstitutionoftheUSA)• S51CthofAustralianConstitutionAct1901:
“TheParliamentshall,subjecttothisConstitution,havepowertomakelawsforthepeace,order,andgoodgovernmentoftheCommonwealthwithrespectto….(xxxi)theacquisitionofpropertyonjusttermsfromanyStateorpersonforanypurposeinrespectofwhichtheParliamenthaspowertomakelaws;
• Victoria:“Property”isprotectedbys20ofCharterofHumanRightsandResponsibilitiesAct,2006(Vic):‘Apersonmustnotbedeprivedofhisorherpropertyotherthaninaccordancewithlaw’
Preliminaryfindings• Difficulttoidentifyasetofcorecharacteristics• Emphasisseemstobeplaceduponthecharacteristicofexcludability(making
itprivate)• Propertyrightsarelimited(numerusclausus):
o Freeholdestates;leaseholdestates;easements;profitsandmortgages
o Equitableinterests:beneficialownership(trust),equitablelease;restrictivecovenantsandliens
• Publicinterestinproperty:modifiedbyrightsofother• Propertyhasbecomefragmentedinmodernworld(Videexample,CBp19-
20):o Jurisdiction,subjectmatter,durationoftime,culture,statutory.
§ Forexampletheownerofanestatecanleasetheestatetothetenantwhoacquirespossessionandenjoysthepropertyduringthecurrencyofthelease.Theremaybeamortgageregisteredovertheproperty,andthebankhasasecurityinterestovertheproperty.Ifunpaid,thebankcanselltheproperty.Neighbourcantraveloverthepropertyiftheownergrantsaneasement.Thefarmthereforehasmanyrelationshipsovertheproperty.
• Theownerandbank• Theownerandtenant• Theownerandtenant
§ Thiscanbeseenthroughthe‘bundleofrightsmetaphor’.• Propertyratherinvolvesacomplexbundleof
relationships• Rangeofpropertyinterestscanariseoversinglepiece
oflandbecauseeachisdistinctive• Differentformsofpropertyrelationshipsco-existwithoutconflictingwith
others.• Ifinterestsareinconflict,propertylawprovidesrulestoresolveconflict:
accordprioritytoaright.
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o Differentinterestsinlandcompetingwithoneanother,thenCLfallsbackonpriorityrulesinwhichoneisgivenmorepriorityovertheother.
Justificationofproperty
• Rewardslabour• Protectsprivacy• Promotessecurity• Personalandeconomicincentives• Promotespersonalliberty(CB35-36)
• Itshouldbenotedthat:
o Propertyremainsasocialcreation:notabsolute,sacrosanctandgovernmentmayinterferewithit
o Propertyhasledtomonopolisationofscarceresourceso Propertyrightsaresubjugatedbypublicinterestsconcerns
(environmentallawandresourcemanagement)
• “Withoutpropertytherewouldbe‘noplaceforindustry;becausethefruitthereofisuncertain:andconsequentlynoCultureonEarth,NoNavigation,oruseofthecommoditiesthatmaybeimportedbySea;nocommodiousBuildings,noInstrumentsofmoving,andremovingsuchthingsasrequiremuchforce;noKnowledgeofthefaceoftheEarth;noaccountofTime;noArts;noLetters’”
(ThomasHobbs)• Othertheoriestojustifyproperty(CB1.15-1.20)
SourcesofPropertylaw
• PropertylawdoctrineintroducedwhenBritishCrownclaimedsovereigntyoverAustraliaalittlemorethan200yearsago
• Sources:o ImportedEnglishcommonlaw(judge-madelawandstatute)o Equityo Enactmentsoflocallegislatureandcourtdecisionso Nativetitle(ongoingindigenousconnectiontoland)wasrecognisedin
theMabodecisionasarightrecognisedbythecommonlawbutnot‘of’thecommonlaw(newformofpropertyright–suigenerisformofinterestinrelationtoland-andanewsourceofPropertylaw).
o Internationalhumanrightslawhavingabearingonproperty.• Ex,Article1oftheFirstProtocolofEuropeanConventionon
HumanRightsimpactsonEnglishlaw:§ Providesaguaranteeofpropertyrights§ Stateconditionsfordeprivation–publicinterest+
compensation§ Allowscontroloftheuseofpropertyinthegeneral
interestbytheStates
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Topic 1.2: New Forms of Property
Ø NewformsofpropertyØ VirtualpropertyØ Resourcesincapableofownership
Newformsofproperty• Propertyisadynamicconcept• Notionofpropertymaychangetomeetsocialdemands• Newsourcesarebeing‘privatised’• Parliamentcancreatenewformsofproperty• Increationofnewpropertybyacourt,thecourtmustbepreparedto
identifythesubjectofproperty,objectofpropertyandentitlementsthatattachtoproperty
• Ifnewformsofpropertyarecreated:o Itmustbeidentifiable;o itsscopeandformmustbeascertainable;o itmustnotimpingeuponacceptedmoralboundaries;o therehastobeasociallyandeconomicallyimperativeforthecreation
ofnewproperty
Virtualproperty• Incyberspaceindividualscanobtainvariouskindsofvestedinterests:
o domainnames,o webpages,o websites,o onlinedatabases,ando treasuresandcreditsinternetgames
• Valuable• Intangible,thoughvirtualpropertyisareality• Lawchallengedtobringnewkindofresourcesintotheoreticalrangeof
propertylaw(“propertised”)• Difficulty:
o Transcendsnationalboundarieso Thustheboundariesof‘property’shouldbeextendedtoinclude
virtualproperty
Resourcesoutsideofprivateownership• Romansdistinguishedbetweenthingscapableofprivateownershipand
thingsnotcapableofprivateownership(resintracommerciumandresextracommercium):
• Thingsoutsideofcommerce:o Commonthings(rescommunes)commontoallnotcapableof
appropriationbyany:• Air,runningwaterandsea
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o Publicthings(respublicae):propertyofstatebutintendedforpublicuse:
• Roads,riversandharbourso Religiousthings(resdiviniiuris)o Thingsnotbelongingtoanowneratagivenmomentintime(res
nullius)§ Wildgame§ Capableofappropriationbutnotpropertiedyet
Naturalresources• BractonwasinfluencedbyRomanlaw:notallresourcesavailableare
amendabletoprivateownershipo Publicpossessrightstonaturalresources(beaches,sea,parks,airand
runningwater(rescommunes)(uncontrollable);o Publictrustovernaturalresources;o Immunefrom‘privatisation’;
• PublicpossessinviolablerightstonaturalresourcesNotregardedaspropertybecauseof:
• Absenceofexcludabilityo AnimportantfeatureinEnglishlaw
• Hardins’“Tragedyofthecommons”?https://www.youtube.com/watch?v=4RE9PMwwaFc
o Overuseshowserosiono Ifsomethingisopentoeveryoneandpersonsactintheirowninterest
,thenaturalresourceisoveruse.Thusthisleadtodevelopmentofenvironmentallawtoprotectthenaturalresources
o Somenaturalresourcesareincapableofprivateappropriationduetomoralandsocialprinciples
o PrincipleinEnglishlawthattheStateisacarer/trusteeofnaturalresources
• Statutorycontrolovernaturalresources• Basisforenvironmentallaw• Someresourcesarethusoutsidetheboundariesofprivateownership
pursuanttomoralandsocialprinciples
(a)Resourcesincapableofownership(a)Righttoaspectacle(VictoriaParkRacingvTaylor)
Atissuewaswhetherthereispropertyinaspectacle.Casewasbasedon‘nuisance’becausebroadcastallegedlyamountedtounlawfulinterferencewithuseandenjoymentofracecourse.
LathamCJ• Ownerentitledtolookoverfenceofneighbour
o Cannotgetaninjunctiontostopsomeonelookingoverafence
• Neighbourcanpreventthisbyerectingfence
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• Canputupfencesandstructurestopreventpeoplefromattendingwithoutpayment
• Lawcannotbyinjunctionerectafencewhichownerisnotpreparedtoerect
• Canplacenoticeboardswherenotvisibletopeopleonoutside• Doesnotharmtheownerbydescribingwhattakesplaceon
anotherowner’sland• Expenditureofmoneyincreatingspectacledoesnotcreate
quasi-property• Noprecisemeaninginphrase‘propertyinaspectacle’• Spectaclecannotbeownedintheordinarysenseoftheword
–onlypropertyinmetaphoricalsenseinabsenceoflegalprinciple
o CantreallydefineaspectacleaspropertyRichJ(dealtwithnuisance)
• CamewithinapplicationofnuisanceDixonJ
• UnlikeintheUSA,thereisnoquasi-property(broadcastingrights)ifanindividualhasexpendedeffortandincurredexpensesincreatingsomethingofvalue
o IsaformofpropertybutnotthepositioninAustralia• Doesnotassumetheexclusivenessofpropertybecauseof
effortsofsomeonetoobtainvalueo Merefactthatyou’vespentmoneytostataracetrack
doesn’tgiveyoutherighttoexcludeothers• Therighttoexcludedefendantsfrombroadcastinga
descriptionoftheoccurrencetheycanseeontheplaintiff’slandisnotgivenbylaw
o Ifyouaretheownerofaracetrackandyouhaveracesontheland,youdon’thavetherighttoexcludeothersfrompassingbyandlookingin
o Thusnotaformofproperty• Notaninterestprotectedbylaworequity
EvattJ(dissenting)• Endresult:therighttoaspectacle/viewisnotcapableof
beingpropertized.o Ratiodecidendi:itisnotdefinable.o Notangiblepresence.o Parametersofthespectacleareunclear.o Exclusivenessofpropertyisabsent–bycreatinga
spectacleonyourproperty,youcannotexcludepasser-bypeoplefromlookingatit.IfthiswasgrantedinCourt,itwouldinterferewiththenormalpropertyrightsofownersofproperty.
• Nogeneralrightofprivacyandnounrestrictedrighttospyuponneighbour
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• Apersonwhousesdevicesforthepurposesofenablingthegeneralpublictooverlook/spycanbeliableinnuisanceifappreciabledamage,discomfortorannoyanceiscausedtoneighbour
• Surroundingcircumstancesneedtobeexamined• Answerliesinprivatenuisance
Held:• Spectacle/viewnotcapableofbeingowned
o Howevernewspaperscanobtainrightstodocumentacelebritywedding/spectacle.
o Butinnormalcourseofevents,youareabletolookacrosstoyourneighboursproperty.
• Ratio:o Notangiblepresenceo Parameters/boundariesofaspectacleareunclearo Absenceofexclusivenessofproperty
• Toallowrighttoexcludethewholeworldfromspectacleorviewmayimpederightsofneighbouringowners
• Otherrightsareusedtocontrolaccesstoaspectacle
(b)Resourcesincapableofownership
(b)Moralboundaries:• Ownershipofhumanlifeimpossible• Individual“owner”ofownbodyparts• Humancorpseintendedforburial/cremationnottreatedasproperty;
executorhascustodytodealwithbodyaccordingtolaw• Regenerativeparts(blood)maybetransferredinownershiptothirdparty
whocanclaimownership• Non-regenerativeparts(vitalorgan)nottransferableunlessdonated
during/afterdeath• Regulationsregardingdonordonations
• Humanpartsortissuemaybeneededformedicalresearch(CB62)
MoorevRegentsofUniversityCalifornia
• Issue:canhumantissuesthatwereremovedfrompatientandusedformedicalresearchbereclaimedinownershipbypatient(fromownerofpatentedcell-line)?
• Mooreclaimedheownedcellsandunauthorisedusethereofgavehimrighttosueforconversion
• Courtfoundthiswasnotthecase,whenthecellsweerremovedfromhimthenMooredidnothaveaninterestinthecells.
o Somethingnewwascreatedfromtheexcisedcells.• Heldthatownershipofcellswasnotestablished:
o Didnotretainasufficientinterestinexcisedcells;
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o Californialegislationlimitscontroloverexcisedcells;o CelllineandproductsderivedfromitcannotbeMoore’sproperty
becauseitisfactuallyandlegallydistinctfromoriginalcells• Heldthatexcisedcellsarenotlikechattelstosupportactionforconversion:
o Policyconsiderationnottoextendtortofconversion;o Tortofconversionisnotnecessarytoprotectpatient’sinterest;o Problemsinthisareashouldberesolvedbylegislation.
• UniChadpropertyrightsovercell-line(patents)MoorevRegentsUniCaliforniaPolicyArguments
• Patientcannotclaimtissuesbackbecausesocietalpolicyargumentsfavouringmedicaltreatmentoutweightheimportanceofindividualproprietaryconsiderations.
o Medicalresearchismoreimportantthanpersonalinterestincells (Efficiencyargumentprevailed)
• Extensionofpersonalpropertyrightstointerferewithmedicalresearchwouldbesociallyunacceptableandunjustified
• Individualrightsareprotectedbydoctrineoffiduciarydutyandinformedconsent
o Informedastowhichproceduresaretohappenandyoumustconsent,whichdidn’thappenhere.Onthisbasisthepatientwouldbesuccessful.
• BroussardJ(dissenting):difficultywithmajority’sreasoningonconversion–ifcellisstolenbythiefinlaboratory,UniCwouldbeabletomaintainanactioninconversion(Dualissueofownershipofpropertyinbodyanditsproductsandunethicalnatureofpracticeofnon-disclosure)
• Note:causeofactionwasrecognisedforbreachoffiduciarydutyorfailuretoobtainconsent
HumanTissuesAct1982(Vic)
• OwnershipoverhumantissuedealtbyAuststatutes• Ss38-39prohibitbuyingandsellingofhumantissues:
“…apersonshallnotsell,oragreetoselltissue(includinghisowntissue)ortherighttotaketissuefromhisbody”(s38(1)).“..apersonshallnotbuy,agreetobuy,offertobuy,holdhimselfoutasbeingwillingtobuy,orinquirewhetherapersoniswillingtoselltothepersonoranotherperson-(a)tissue;or(b)therighttotaketissuefromthebodyofanotherperson”(s39(1)).
• Unlikelythatclaimforconversion(asattemptedinMoore)wouldsucceedorariseinAustralianjurisdiction.
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(c)Resourcesincapableofownership(c)Commonheritageofmankind
• Naturalresourcesofhighseaso Areaisopentoeverybody
• Outerspaceo Notionofcommonheritageofmankind
§ Oldromanideasthatyoucannotendorseprivateownershipthatwillleadtoconflict–referencetoUNOuterspacetreaty
o Endorsingprivateownershipwillleadtoconflicto UNOuterspacetreaty
• Spaceisprovinceofallmankind• Nosovereigntyclaimsbystates• Propertyrightscontrarytocommonheritage• Propertyrightshavebeenasserted
• MoonTreatyo Regulatingcontrolandownershipofmoono Divisionoflunarresourceso Rescommunesconcept
§ Belongstoeveryoneanditcannotbeappropriatedo (Strangely)Privateownershipnotexpresslyprohibited
§ Extra-terrestrialrealestate?§ Companysellingareasofthemoon?
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Topic 1.3: Contractual & Property Rights
Ø DistinctionbetweenpropertyrightsandcontractualrightsØ Classificationofproperty
PersonalRightàoperatesbetweenpartiesprivytotheCTPropertyRightàoperatesagainstthewholeworldContractualRights
• Inidentifyingaproperty,youlooktowardsthefeatures.Then,ifyoucallitapropertyrightthenyoucandistinguishitfromacontractualrightorpersonalright.
ContractualRight
• Contractualrightisonlyenforceableagainstotherpartytoacontract• CRentailstherighttohavethecontractperformed• Notarighttoathing
o Buttheobjectoftherighto E.g.bepaid
• Ingeneral,notenforceableagainstthirdparties
• Enforceablecontractentitlespartytosueintheeventofbreachofcontractbytheotherparty
• Rangeofpersonalremedies• Personalrightagainstotherpartytogetdamagesforbreachofobligation• Remedy:tomakegooddamage• Contractualrightmaybeinterpretedtobecomepropertyinterest(loancontract–
mortgage;purchasecontract-trust)PropertyRight
• Confersarightoverathingo Forexamplebankshavepropertyrightsoverahousewithamortgage.o Forexampleyoupayforaseatedticketatamatchandhavepropertyrighttositon
theseatnotownit.o WhatstartsoffasaCTcandevelopintoapropertyright.
• Enforceableagainstthethirdparties/restoftheworldo E.g.ifneighbourgrantsyouaneasementtotraveloverhisfarm,thenyoucan
traveloverhisfarm,enforceitoverotherneighboursandthirdparties.• Supportedbypropertyremediestoprecludeanybody(apartfrompersonwithbettertitle)
frominterferingwithpropertyrights• Mustfallundertherecognisedcategoriesofpropertyrights(numerousclausus,ora
propertyrightlimit)• Propertyrightsmayarisefromcontractcausinganoverlapbetweentwosystemsofrights• Contractwhichpurportstogiverightsoverthings,notnecessarilypropertyright:Cinema
ticket:rightofentry/access;propertyrightsarenotconferred• Note:righttoenforceacontractisresourcecapableofformingsubjectofproperty
relation:o Ownershipofcontractualright
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o Shares,insurancepoliciesandbankaccounts
DistinctionbetweenLeaseandLicence• Thedistinctionbetweenaleaseandalicencehighlightsthedistinctionbetweenproperty
andnon-property,andbetweenpropertyrightandcontractualright• Examples:
o Exampleone:§ Youleaseanapartmentfromalandlord.Hegivesyoukeysandaccessto
property.Heisentitledtoinspecttheproperty3timesayearbutapartfromthatyouhavecontrolandpossessionoftheproperty.
§ Leaseandpropertyright:becauselandlordconferredexclusivepossessionontoyou.Youthuscanexcludeanyonefromentering,eventhelandlordoncertaindays.Thisisforacontractualperiod.
o Exampletwo:§ Westfieldshoppingcentreownersallowspublictoentertheshopping
centrefreeofchargetoaccessit.§ Licence:becauseitispermissiontoenterorbeonthelandbutnotexclusive
possessionoveranypartofthebuilding.Gratuitouspermissionexistsbecauseyoupaynothingtoenter,anditmayberevokedatanytime.
o Examplethree:§ Youpaytowatchafootymatch.Theticketallowsyoutositonaspecified
seat.§ Contractual:permissiontooccupyduetoaCT.Permissiontoenterthe
premisesandtheseat,supportedbyacontractualarrangementinpayingforaticket.
o Examplefour:§ Youaretheownerofthefarm,owningwildberriesonthefarm.Yougrant
theneighbouronceayeartopickberriesonyourfarmandlinkittosomekindofagreement.
§ PropertyInterestlinkedwithLicence:tobeabletopickberries,youarealsoallowedtoenterontothelandandalsotakesomethingfromtheland.
o Thesearealldifferentpossibilities.Possibilities:
1. Lease:conferralofexclusivepossession,uponterms,foralimitedperiodoftime
2. Licence:permissiontodoanactonlicensor'slandwhichwouldotherwiseconstitutetrespass:
1. Merelicence:gratuitouspermissiontoenterland,revocableatwill,becausethelawdoesnotenforcepromiseswithoutconsideration.Notsupportedbyacontract.
2. Licencecoupledwithacontract:permissiontoentersupportedbycontractualarrangement
3. Licencecoupledwiththegrantofapropertyinterest:permissiontoenterlandinsupportofarecognisablepropertyinterestinland–forinstancearighttoremovegravelfromanother’sland(profitàprendre)
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LeaseandLicence
Lease• Itisapropertyinteresteventhoughhistoricallyitwasclassifiedasapersonalproperty.
o Itisapropertyright,alease.• Apropertyinterestiscreatedbyconferringpossession/enjoymentofland• Exclusivepossession=propertyinterest/right
o Canevenexcludelandlord.• Rightinrem
o EnforceableagainstanyoutsidersnotpartytotheCT• Classifiedhistoricallyaspersonalproperty(don’tconfusepersonalpropertywitha
personalright!)
Licence• Notapropertyinterest.• Permissiontodosomethingwhichwithoutpermissionwouldbeunlawful(accesslawful)• Creationofpersonalrighttouselandunderconditionswithownerretainingpossession• Nointerestpassestolicensee–notgivenexclusivepossession• Propertynotaltered• Contractuallicence(evenifirrevocable)notpropertyinterest
• Opportunitytowitnessaperformanceisnotaninterestinproperty/equitabletitle
Differentiation• Licenceispermissiontodosomethingthatwouldotherwisebeunlawful.Accessisgiven,
thusapersonalrightiscreatedbetweenguarantorandguarantee.Nopropertyinterestpassesànoexclusivepossession.Justacontractuallicencethatmaybeirrevocable.
• Leasegivesyouexclusivepossession.• Righttoexclusivepossessionisusedtodistinguishaleasefromalicence:
o exclusivepossession(lease);o absencethereof(licence)
CowellvRosehillRacecourseCoLtd(HK)• Suedfordamagesforassault-defencetrespassing–repliedirrevocablelicence.• Issues:
o Whetheruponpurchaseoftheticketdoesoneacquiresanirrevocablelicencetoremainthere;
o Ifonlycontractuallicence(damagelimitedtoadmittancefee)theCTcouldbebreached,claimdamagewhichisthefeeofadmittance;
o Ifproprietaryrightisgainedthroughbuyingtheticketthedamagerecoverableintortwouldbegreater
• WoodvLeadbitter:principlestatedthatamerelicenceisrevocable;licencecoupledwithapropertyinterest(example,easementsandprofitàprendre)isirrevocable.
o E.g.farmentryandpickberriesisirrevocable.
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DoctrineofWoodvLeadbitter:ifapropertyrightiscreatedandalicenceisgiventoenjoypropertyrightthegrantorcannotdivestgranteeofpropertyrightordeterminepropertyrightbybreakingagreement.Granteeownspropertyrighttowhichlicenceisanirrevocableincident
• HurstvPictureTheatres:righttoseeaspectacleisapropertyinterest(no).Interest(tosee
aspectacle)coupledwithlicenceisirrevocable.• CourtstatedthatthedecisioninHurstwaswronglydecidedbecauseitignoresthe
distinctionbetweencontractualandpropertyright(therefore,notfollowed)• TheCourtthenheldthatbuyingaticketforentertainmentcreatesapersonalrightinthe
buyeragainstthesellertohavethecontractperformed.o E.g.buyatickettowatchthecricket,youareexpectedtopayforitandcanexpect
theCTbeperformed.ButitisstillapersonalrightandCTbetweenyouandtheorganisers.
• Contractualrightsandobligationsarecreatedwhichareenforceableinpersonam• Breachofsuchcontract,remedyindamagesandnotproprietaryremediesDistinguishbetweenacontractconferringpossessionandenjoyment(lease)andcontractconferringrighttouselandunderconditionswithownerretainingpossession(licence)• Righttoseespectaclenotpropertyinterest:
o Notatangiblethingtobetakenfromlando Personaladvantage
• Analogy:wrongfuldismissalofemployeethatworksonpremiseorterminationofbuildingcontractwithbuildingcontractororrevokinglicenceofaudienceduetosafetyprovidesclaimfordamagesbutwouldnotentitlethemtoremainonpremise(becauseofsomeinterest).
o EvenifemploymentCTisterminated,evenwrongfully,youstilldon’thaveapropertyinteresttostayattheworkplace.
• Evenifagreedforconsiderationnottorevokelicence,suchlicencecanberevokedwherenopropertyinteresthasbeengranted.
o Organiserscanrevokepermissionandremoveyoufromthepremises,thismaybeabreachofCTifyouwereremovedbutinnocent,andcanclaimdamagesforfeeofticket.
• Suchrevocationconstitutesabreachofcontract:damagelimitedtoadmissionfee.Unabletorecoverdamageintort
• Uponrevocation(evenwrongfully)plaintiffbecomesatrespasserandremovalwithoutuseofundueforcedidnotconstituteassault.
Summary• Inidentifyingwhatapropertyrightis,wedistinguishitfromacontractualright,and
distinguishbetweenaleaseandalicense.• Barelicence–canberevokedatwilloflicensor,andforanyreasonwhatsoever(no
contractualrelationshipandnograntofapropertyinterest)o Ownerofsomethinglikeashoppingcentrecanrevokepermissionforyouto
bethere.YourbeingthereisnotlinkedtoaCTbutalicenceofpermissionthatcanbewithdrawnforanyreasonwithnoCTobligations.
• Licencecreatedbymeansofacontract–revocableatwilloflicensor,bysuchrevocationthelicensormaybecomeliableforbreachofcontract(contractualrelationshipbutnograntofapropertyinterest)
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o E.g.attendingacricketmatchandenteringintoaCT,stillrevokableandbreachedandtheattendeeshaveremediesforbreach.
• Licencecoupledwithgrantofpropertyinterest(profitàprendre–righttoremovenaturalproductfromland).Licensecannotberevoked
o Permissiongrantedtoremovethingsfromproperty,someonecannotgetridofyoubycancellingpermissiontobeontheland,becausethatpermissionislinkedtoapropertyinterest,andthatinterestisenforceableagainsttheowner.
Overview(CB35)
• Propertyright(inrem);contractualright(inpersonam)• Propertyconfersdifferentrights(righttoexclude)• Contractmaycommencefrominpersonamtopropertyrights(loan–mortgage)• Lease(exclusivepossession)• Licence(permissiontoenter)notlinkedtoaCTcanbewithdrawnwithnoconsequence• Licencecoupledwithcontract(e.g.payafee)doesnotbecomeproprietaryevenifthe
contractcontainsaprovisionmakingitirrevocable• Licenceisnotarecognisedpropertyinterestandcannotbeenforcedagainstthirdparties• Relationshipsmayconfercontractualandproprietaryinterests
ClassificationofProperty(SeeCB68)Afteridentifyingaproperty,youmustclassifyit…Classificationwithreferencetonatureofobject:
• Propertycanbedividedinto:o Realproperty(Land) (Immovables)o Chattelsreal(Leasesofland)o Personalproperty(Chattels)(goods) (Movables)
• Realpropertycanbesubdividedinto:
o Corporealforms:(tangible)• Land(andrightofpossession)• Territorialseaandsea-bed• Fixtures(addedtoland)• Nativetitle
o Incorporealforms(intangible)• Easements• Profitsàprendre(righttoremovethingsfromland)• Rentcharge• Mortgage(propertyrightofsecurity)
Classification• Typesofleaseholdinterests
o Fixed,periodic,tenancyatwillandtenancyatsufferance• Personalpropertycanbesubdividedin:
o Corporealforms• Chattels/goods(chosesinpossession)
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o IncorporealformsEnforceablelegalrights(chosesininaction):
§ Debts§ Shares§ Righttosueundercontract§ Copyright§ Insurancepolicies
Classificationwithreferencetojurisdiction:o Legalinterest(Commonlaw)o Equitableinterest(Equity)
Classificationaccordingtonature• Propertyisclassifiedinaccordancewiththenatureofsubjectmatter:
o Primaryclassificationisbetweenrealproperty(land)andpersonalproperty(chattels)
• Realproperty:propertyinterestoverland• Personalproperty:interestoverchattels/goods
o Land:physicalearthandanythingattachedtoitandtheairspaceaboveo Personalproperty:movableobjectswhichdonotconstitutelando Personalpropertyisaresidualcategoryo Sub-divisionwithineachcategoryisbetweentangible(corporeal)andintangible
(incorporeal)o Corporealpropertyexistsinaphysicalsense,whereasincorporealpropertydoes
notexistinaphysicalsensebutislegallyenforceable
Historicaldifferences• Differencesbetweenlandandchattels:
o Feudaltenureappliestolandonly:• LandissubjecttoultimateownershipbytheCrown• Personalpropertyisnot
o Availabilityofremedies:• Realpropertycanberecoveredbyrealactionifownerwaswrongfully
dispossessed;• Personalpropertyrestrictedtoapersonalmonetaryclaimbasedupontort
or/contract;• Possessorytitleofpersonalproperty
o Rulesofdescentdifferedupondeathofowner:• Landwenttotheheiratlaw(usuallytheeldestson)• Personalpropertywenttothenextofkin
Realproperty• Distinctionhastosomeextentbeensupersededduetoavailabilityoforderfor
repossessionofchattelsinthesamewayasforlando Caninstituteremedytoclaimpossessionofpersonalpropertysodistinctionisnot
importantanymore
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• Statutoryprovisionforrecoveryofchattels• Land(realty)subdividedintotwocategories:
o Corporealproperty(hereditaments)referstorightstoland(rightofoccupation)§ Canpossesstheland/goods,andremedytoclaimpossession
o Incorporealpropertyreferstorightsoverland:§ Cannotpossessorclaimpossession
• easements:rightswhichburdensonepieceoflandandbenefitsanother• profitàprende:righttotakesomethingoutofthesoiloftheland• rentcharge:aburdenonlandentitlingthegranteetocollectrentsfrom
land• mortgage:lendersinterestinlandwhichsecuresrepaymentofaloan
PersonalProperty• Tangiblepropertyconfersuponholdertherighttopossesstheobjectwhereasintangible
propertydoesnotconfertherighttopossess(objectisaright)– Soifitiscorporealproperty(landorgoods)thenyoucanhavepossessionofitand
youhavearemedytoclaimpossession.• Personalpropertycanbesubdividedinto:
– Chosesinpossession(tangiblepersonalproperty)– Chosesinaction(intangiblepersonalproperty)–enforceableright:
• Rightofclienttomoneyinbankaccount• Share• Lifeinsurancepolicy
- Chosesinactioncannotbepossessedphysicallyandcannotgiverisetopossessory
rights
• Chosesinactioncanbefurtherbrokendowninto:– pureintangibles(notrecognisedthroughadocument)– documentaryintangibles(recognisedthroughdocument–billoflading)
Leases• Propertyisalsoclassifiedintothirdcategory,namelychattelsreal(leases):
o Anenforceablecontractconferringexclusivepossessionforalimitedtimeagainstland
o Classifiedaspersonaltyforhistoricalreasonso Realactionsnotavailabletodispossessedtenanto Affordedonlypersonalrightsandactionfordamageso Writofejectmentallowedtenantsrecoveryofpossessionofleasedlando Remediesakintorealactionso Classifiedundertheblendedcategoryof‘chattelsreal’o LeaseholdinterestsareincludedwithinthedefinitionoflandundertheProperty
LawAct1958(Vic)• IntheearlydaysinEnlgishCL,ifyouhadaleaseyoudidnothavearealactioninthesense
youcouldreclaimthatpossession,despitelookinglikearealright.o Itlackedthefeatureofaremedy.
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• Overtime,itbecamepossibleforatenant,orowneroflandtoreclaimpossessionsothedistinctiondisappearedbutstillcouldnotclassifyitasRealProperty(orland),andnowregarditasanintermediatecategory.
• Now,aleaseholdinterestisregardedaslandSummary
• Propertyisarelationshipbetweenperson/object/otherpersonsandmaybemorethanonerelationshipexisting:YannavEaton.
• Inidentifyingwhatapropertyrightis,wedistinguishitfromacontractualright,anddistinguishbetweenaleaseandalicense.
• Barelicence–canberevokedatwilloflicensor,andforanyreasonwhatsoever(nocontractualrelationshipandnograntofapropertyinterest)
o Ownerofsomethinglikeashoppingcentrecanrevokepermissionforyoutobethere.YourbeingthereisnotlinkedtoaCTbutalicenceofpermissionthatcanbewithdrawnforanyreasonwithnoCTobligations.
• Licencecreatedbymeansofacontract–revocableatwilloflicensor,bysuchrevocationthelicensormaybecomeliableforbreachofcontract(contractualrelationshipbutnograntofapropertyinterest)
o E.g.attendingacricketmatchandenteringintoaCT,stillrevokableandbreachedandtheattendeeshaveremediesforbreach.
• Licencecoupledwithgrantofpropertyinterest(profitàprendre–righttoremovenaturalproductfromland).Licensecannotberevoked
o Permissiongrantedtoremovethingsfromproperty,someonecannotgetridofyoubycancellingpermissiontobeontheland,becausethatpermissionislinkedtoapropertyinterest,andthatinterestisenforceableagainsttheowner.
• ClassificationofPropertyàFixturesàPersonalProperty/PossessionàAdversePossession