- Contract — Property and title and choice of law — Third party property rights and obligations of the seller — Interests and terminology and transfer of title
This chapter discusses the legal structure of property interests in commercial transactions, first by explaining the relevant legal concepts such as the distinction between property rights and personal rights. It proceeds by considering contractual rights and how property as assets differ from property as interests in assets. It then examines the key forms and purposes of key proprietary interests, noting that parties that enter into commercial transactions create proprietary interests and personal obligations, namely: contracts of sale with retention-of-title clause, title-based interests (hire-purchase agreements and leases) and security interests (pledges, charges and mortgages). The chapter also analyses the nature of parties' legal relationship inherent when proprietary interests are created, focusing on the relevance of the agreement and whether the legal relationship between the parties to the transactions may be fiduciary. Finally, it describes the power to act and the authority to act with respect to such relationships.