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Part VII Obligations of the Seller, 32 Third Party Property Rights

From: Global Sales and Contract Law (2nd Edition)

Ingeborg Schwenzer, Edgardo Muñoz

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 22 September 2023

Agent's duties and liabilities — Legal relations between principal and third party — Limitation of liability — Conformity of goods — Third party property rights and obligations of the seller

This chapter explicates third-party property rights. A general principle of sales law indicates that the seller is liable to the buyer when delivering goods not free from third-party rights. Sellers can only escape liability when the buyer is aware of the encumbrance with third-party rights. Meanwhile, the rules on third-party rights in terms of non-conformity always relate to the physical properties of the goods. Legal systems differ with the legal regime applied to goods encumbered with third-party property rights. The circumstances in which third-party rights may affect the goods can be categorized into three groups: ownership rights, third party encumbered with goods, and the impact of public law.

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