- Property and title and choice of law — Interests and terminology and transfer of title
This chapter considers incidents in which a new asset may be derived from the one already subject to the proprietary interest. It begins with an overview of derivation in law in the context of physical matter, the possible categories of new assets and the ways in which they might be derived from original assets. In particular, it describes three categories of derived assets: proceeds, products and fruits. It then examines derived assets from the contractual perspective, along with changes to subject matter of proprietary interests. Changes of subject matter leading or not leading to a new asset are analysed. The chapter concludes with an assessment of the case with rights to payment to show that some assets are so closely linked with the derived assets that having the asset makes little economic sense unless one also has a right to the derived asset.