Property Rules, Liability Rules and Inalienability Term Paper

Property Rules, Liability Rules and Inalienability - Term Paper Example The interpretation of some property laws however varies in different countries, but all work to promote order and coexistence of people in the societies. The society subject to the law have therefore an obligation to act in accordance to the property law, failure to which, they are indebted to the law as a liability for failing to comply to the legal expectation. Unlike the property rule, where the consent of the owners of the property is required for transfer of property, the liability rule is interfered by the legal system, who determine the cost incurred as the obligation to fulfill on the part of the liable person (â€Å"Property rule† 1- 4). The inalienability rule acts differently by preventing transfer of entitlements to protect and even regulate the activities of granting the property. It puts aside the parties involved (willing buyer and seller), and allow the government by authority to intervene the next actions (whether to stop the transfer, plan for compensation, o r determine ownership among others) depending on the investigation outcomes of the dispute. 2. Property Rules 2.1. Ownership Ownership of properties by the people receives varying degrees of protection from the legal government society. Whatever an individual, group, or community owns is prevented from the harassment and destruction that may be carried out by the excluded parties, so that the owners can freely enjoy their legal rights. Properties are lawfully recognized as a right that an individual or group has over an ownership of things, which they can use and can exclude others; it is divided into two, real (rights to land and anything attached to it) and personal property (chattels and intangible personal property as other possessions apart from land) (â€Å"LexisNexis† 2). Property rule emphasizes on the protection of an entitlement for an individual or persons, which they deserve with a property right. Since property entails a bundle of rights, the law itself protects the owner, so that he can exercise his rights over his property (rights to possess, use, transfer and pass on, transform and even block others from interference). â€Å"A property rule implies the prohibition on the invasion and a right to enjoin offenders† (Bergkamp 210). This possibly means that in a dispute where one violates the property rule, the offended can obtain a legal plea for a restoration. 2.2. Transfer Ownership is recognized as the primary right from which all the other rights attached to the property may be derived. Possession of the property refers to any object, whether tangible or intangible; this is however different in Dutch and German law that limit ownership of tangible objects (Bouckaert 34). Today software, systems, published work, stock, bonds and tangible assets (buildings, machines, and estates) can be owned as private properties. Take an example that P intends to use Q’s track against her wish. Q’s track being protected by the law, Q can prevent P from executing the illegal intension via a court order that forbids P’s action as the first protection measure. If P ignores the legal order and uses the Q’s property (as a violation of her right), P is issued with an order for restitution by the court. Suppose the restoration of the property is impossible to achieve (probably because it was destroyed while in P’s hands), then compensation to the owner (Q) is made through money damages determined by the court, which the Q has no option but