Chapter 17 - Chapter 17 Personal Property The Context of...

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Chapter 17: Personal Property The Context of Personal Property Description Real property refers to land, whatever is permanently attached to it, and the associated legal rights Personal property includes everything other than what is included uner real property Personal property falls into two major categories; tangible and intangible Tangible property: property that is concrete or material Intangible property: derives its value from legal rights, rather than concrete, physical qualities Examples of intangible property are insurance policies, accounts receivable, bank accounts and customer records, as well as various forms of intellectual property Acquisition of Ownership Ownership of property is acquired by a business in a variety of ways: Land is acquired through purchase or lease The ownership of goods is acquired by purchasing or manufacturing them Insurance coverage is bought by paying premiums and is described in the insurance policy, which gives the customer the right to recover losses in specified circumstances Accounts receivable are created by delivery of goods/service to customers, who agree to pay at a later day. The suppliers acquires the right to collect the accounts, which can be sold to other businesses Certain kinds of intellectual property, such as copyright, are owned as a result of being created. Ownership of other forms – such as trademark – is established through simple use, or registration, or both. Intellectual property can also be bought from other owners There is no comprehensive system for publicly registering title to personal property as they is with real property. However, there are some specialized registries for items such as motor vehicles, patents, and trademarks The reason for the difference concerns the mobility of personal property There is little utility in having a provincial registration system for most personal property when goods are so easily transported to another province In addition, the value of individual items of personal property may not justify the cost of administrating a registration system, or the cost to owners of registering
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Possession without Ownership one party may gain possession of the property of another, often with the intent that possession ultimately be returned to the owner possession without ownership what most often drives the temporary split of ownership and possession is that it meets the business needs of both parties in each situation For example, by leasing, a business gets the benefit of using vehicles and equipment without a large capital outlay By storing equipment with another company, customers get the benefit of a valuable service without having to purchase or lease a building themselves for that purpose Obligations arising from ownership and possession the owner of property bears ultimate responsibility for its protection the law requires someone other than the owner who has possession of the
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This note was uploaded on 01/09/2011 for the course AFM AFM 231 taught by Professor Darrencharters during the Spring '10 term at Waterloo.

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Chapter 17 - Chapter 17 Personal Property The Context of...

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