ownership and its kinds in jurisprudence

 

Introduction

Ownership refers to the legal right to possess, use, control, and dispose of something. It may apply to a Variety of Assets, including property, land, vehicles, intellectual property, and businesses. Ownership typically gives an individual or entity the right to make Decisions about how to use or dispose of the asset, and to benefit from its value or Income generated by it. Ownership can be transferred through various means, Such as sale, Gift, inheritance, or other legal mechanisms.

Definition

Salmond, Austin, and Buckland are legal scholars who have contributed to the understanding of ownership in legal terms.

According to Salmond

  

"right to the full and exclusive possession, use, and disposal of a thing."

According to Austin

"unlimited right to the exclusive use, enjoyment, and disposal of a thing."

According to Buckland

 "the relationship between a person and an object forming part of his environment  whereby he is entitled to deal with the object in any way permitted by law, and no one else is so entitled."

Kinds of Ownership

Corporal and Incorporeal Ownership

Corporal Ownership:

This Refers to Ownership of physical or tangible assets, such as land, buildings, Vehicles, and equipment. Corporal ownership involves possessing and Controlling a physical object.

Incorporeal Ownership:

 This refers to ownership of intangible assets, such as patents, copyrights, trademarks, and other intellectual property. Incorporeal ownership involves owning the rights to use and control these intangible assets, but not the physical objects themselves.

Sole and Co-Ownership

Sole Ownership:

This is when an individual or entity owns an asset solely, without sharing ownership with anyone else. For example:

·         Jane owns a house that she bought with her own money. She has complete control over the house, can decide how to use it, transfer it, or dispose of it. She is the sole owner of the house.
·         ABC Inc. owns a factory that it built and paid for with its own funds. The company has complete control over the factory, and no one else shares ownership or decision-making rights.

 

Co-Ownership:

This is when two or more individuals or entities own an asset together. There are several forms of co-ownership, including joint tenancy, tenancy in common, and community property.

Here are some examples:

·         Sarah and Tom are married and decide to buy a car together. They both contribute to the purchase price, and become co-owners of the car. They share the rights and responsibilities of ownership, such as deciding how to use the car and sharing maintenance costs.
·         Three friends decide to start a business together and become co-owners of the business. They contribute different amounts of capital to the business, and share profits and losses according to their ownership percentages.
·         John and Mary are siblings and inherit a family vacation home from their parents. They become co-owners of the vacation home and decide to rent it out to generate income. They share expenses and income according to their ownership percentages.

Forms of Co-Ownership

1.       Joint Tenancy: Co-owners own equal shares and have the right of survivorship. When one owner dies, their share automatically transfers to the surviving owner(s).

2.       Tenancy in Common: Co-owners may have unequal shares and there is no right of survivorship. When one owner dies, their share passes to their heirs or as directed in their will.

3.       Community Property: Assets acquired during a marriage are considered jointly owned by both spouses. Each spouse has an equal ownership interest in all assets acquired during the marriage, and community property is divided equally in the event of a divorce.

Legal and Equitable Ownership

Legal Ownership:

 Legal ownership refers to the formal ownership recognized by law. It is the ownership that is registered and recorded, and gives the owner the right to use, transfer, and dispose of the asset as they see fit.

 For example:

·         Tom buys a house and the title is registered in his name at the Land Registry. He has legal ownership of the house, which means he can use it, sell it, or transfer it to someone else.
·         ABC Inc. registers a trademark with the relevant government authority. The company has legal ownership of the trademark, which means it can use it to market and sell its products, and prevent others from using the same trademark without permission.

Equitable Ownership:

 Equitable ownership refers to an ownership interest that is recognized in equity, but may not be formalized or recorded in legal documents. It is a beneficial interest in an asset, even though the legal title may be held by someone else.

For example:

·         Jane pays for the down payment and monthly mortgage payments for a house that is registered in her husband's name. Although legal ownership is in her husband's name, Jane has equitable ownership because she has a beneficial interest in the house.
·         John invests money in a business that is registered in his friend's name. Although legal ownership is in his friend's name, John has equitable ownership because he has a beneficial interest in the business.

Vested and Contingent Ownership

Vested Ownership:

 Vested ownership means that an ownership interest in an asset has become effective and certain. It means that the owner has a present and immediate right to use, transfer, or dispose of the asset as they see fit.

 For example:

Ø  Mary inherits a house from her grandmother. The ownership interest in the house is vested in Mary immediately upon her grandmother's death, which means she has the right to use, sell, or transfer the house as she wishes.
Ø  Joe is granted stock options from his employer. The ownership interest in the stock options is vested in Joe after a certain period of time, which means he can exercise the options and acquire the underlying shares of stock.

Contingent Ownership:

Contingent ownership means that an ownership interest in an asset is not yet effective or certain, and depends on the Occurrence of a future event or condition. It means that the owner's right to use, transfer, or dispose of the asset is conditional upon the occurrence of that event or condition.

 For example:

Ø  Bob is named as a beneficiary in his uncle's will. The ownership interest in his uncle's estate is contingent upon his uncle's death, which means Bob's right to use, sell, or transfer any assets in the estate is conditional upon his uncle's death.

Trust and Beneficial Ownership

Trust:

A trust is a legal arrangement where one party (the trustee) holds assets for the benefit of another party (the beneficiary). The trustee manages the assets in accordance with the terms of the trust, and is responsible for distributing the assets to the beneficiary.

For example:

Ø  John sets up a trust for his children's education. He appoints his sister as the trustee, and transfers funds into the trust. The trustee manages the funds and pays for his children's education expenses in accordance with the terms of the trust.

Beneficial Ownership:

Beneficial ownership refers to the ownership of an asset in which the legal title is held by one party, but the benefits and use of the asset are enjoyed by another party.

For example:

Ø  Jane buys a car and registers it in her friend's name because she doesn't have a driver's license. Although legal ownership is in her friend's name, Jane has beneficial ownership of the car because she uses it and enjoys its benefits.

Absolute and Limited Ownership

Absolute Ownership:

 Absolute ownership is the complete and unrestricted ownership of an asset, where the owner has full control over its use and disposal.

For example:

Ø  Sarah buys a house with her own money and owns it outright. She has absolute ownership of the house, which means she can use it, sell it, or give it away as she wishes.

Limited Ownership:

 Limited ownership is a form of ownership where the owner has certain restrictions or limitations on their use or disposal of the Asset.

 For example:

Ø  Tom Buys a house in a gated community that has a Homeowners association (HOA). The HOA has rules and regulations that limit Tom's ownership rights, such as restrictions on the color he can paint the house or the types of pets he can keep. Tom has limited ownership of the house, as he must comply with the HOA rules and regulations.

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