Final Test Private Law Notes PDF

[CONTRACT LAW] [Week 5] **Overall summary** This lecture addresses the concepts of intervening events, breach, and damages in contract law. It introduces the doctrine of frustration, which releases parties from obligations due to unforeseen events, and discusses various remedies available for bre...

[CONTRACT LAW] [Week 5] **Overall summary** This lecture addresses the concepts of intervening events, breach, and damages in contract law. It introduces the doctrine of frustration, which releases parties from obligations due to unforeseen events, and discusses various remedies available for breach of contract. **Introduction to Frustration and Breach** - **Frustration**: Occurs when an unexpected event makes performance impossible. - **Breach**: Happens when one party fails to fulfill contractual obligations. **Doctrine of Frustration** - **Characteristics**: - Frustration is an extreme exception to the Performance Rule. - Rarely recognized in case law. - **Limitations**: - Self-induced frustration (Maritime National Fish Ltd v. Ocean Trawlers). - Mere hardship or inconvenience is insufficient (Davis Contractors Ltd. v. Fareham UDC). - Events that could have been reasonably foreseen (Amalgamated Investment Co. Ltd v. John Walker & Sons Ltd). **Frustration in Civil Law** - **Recognition**: French, German, and Dutch law recognize unforeseen circumstances as grounds for contract termination or modification. - **Terms**: - \"Imprévision\" in French law. - \"Störung der Geschäftsgrundlage\" in German law. **Force Majeure** - **Definition**: An unforeseen event that is external, unpredictable, and irresistible. - **Requirements**: - Must be unavoidable by the parties. - Directly linked to the failure to perform. - Parties must act in good faith and inform each other promptly. **Practical Examples of Force Majeure** - **Sagaz SaRL**: A French company unable to deliver goods due to a pandemic lockdown. - **Frupp GmbH**: A German construction company claiming force majeure due to severe weather. **Remedies for Breach** - **Types of Remedies**: - Legal remedies (monetary damages). - Equitable remedies (non-monetary solutions). - **Goal**: To restore the non-breaching party to the position they would have been in if the contract had been performed. **Types of Damages** - **Nominal Damages**: Awarded when no real financial loss is suffered. - **Liquidated Damages**: Pre-determined compensation for breach. - **Delay Damages**: Incurred due to delays caused by the breaching party. - **Consequential Damages**: Indirect losses resulting from the breach. - **Unliquidated Damages**: Assessed by the court based on the breach. **Assessing Unliquidated Damages** - **Connection Requirement**: A sufficient causal link between the breach and the loss must be established. - **Hadley v. Baxendale**: Established that damages are limited to those that arise naturally from the breach or were contemplated by both parties at the time of contract formation. **Patterns/Themes Across Resources** - **Common Theme**: Both lectures emphasize the importance of understanding the conditions under which contracts can be terminated or modified, highlighting the role of unforeseen events (frustration and force majeure) in contract law. - **Connection**: The interpretation of contract terms is crucial in determining the applicability of termination and remedies, as ambiguity can lead to disputes that require judicial resolution. [Week 6] **Overall summary** This lecture, LLM, at The Hague University of Applied Sciences, focuses on the concepts of termination and interpretation within contract law. It outlines the conditions under which contracts can be terminated, the legal frameworks governing these processes in different jurisdictions, and the methods used to interpret contractual agreements when disputes arise. **Termination** - **Definition**: Termination refers to the ending of a contract due to various reasons, including breach, non-performance, or the application of a termination clause. - **Legal Framework**: - **Article 1224**: Termination can occur through: - Application of a termination clause. - Notice from the creditor to the debtor. - Judicial decision. - **Article 1225**: A termination clause must specify which obligations\' non-performance will lead to termination. - **Jurisdictional Differences**: - **French Law**: - Allows termination if the debtor fails to perform or does not perform as agreed (§ 323). - The creditor may terminate after providing an additional period for performance unless the debtor refuses performance outright. - **German Law**: - Limits termination to cases of serious non-performance or if the debtor was given a second chance to perform (nachfrist). **Interpretation** - **Importance**: Interpretation issues often arise in litigation or arbitration, necessitating a clear understanding of contract terms. - **Legal Principle**: The text of the agreement is considered law, and interpretation is essential for resolving disputes. - **Approaches to Interpretation**: - **Objective Interpretation**: - Utilizes the reasonable meaning of words to protect reliance on clear language. - Example: In a lease, \"property\" may refer to the entire building, affecting maintenance responsibilities. - **Subjective Interpretation**: - Focuses on the actual intentions of the parties involved. - Example: Informal communications may clarify poorly drafted terms. **Common Interpretation Rules** - **Ambiguities**: - Courts resolve ambiguities using the contra proferentem rule, interpreting unclear terms against the drafter. - Example: In a contract regarding motor repairs, if the terms are ambiguous, the court may decide the owner is responsible for costs. - **Contextual Factors**: - Courts consider the overall context, purpose, and reasonable expectations of the parties. - Example: \"Prompt delivery\" may be interpreted based on industry standards or prior dealings. **Gap Filling in Contracts** - **Ad Hoc Gap Filling**: - Courts fill gaps based on what the parties would likely have agreed upon. - Example: In a car rental agreement, it is implied that keys are included even if not explicitly stated. - **English Law Tests**: - **Officious Bystander Test**: - Implies a term if both parties would have obviously agreed to it if suggested. - Example: Confidentiality may be implied in a consultancy contract. - **Business Efficacy Test**: - Implies terms necessary for the contract\'s functionality. - Example: In a machine repair contract, if costs for spare parts are not specified, the repairer must notify the client of excessive costs. **Takeaways** - Termination of contracts can arise from various legal grounds, with specific rules varying by jurisdiction. - Interpretation of contracts is crucial for resolving disputes, with objective and subjective methods available. - Courts employ specific rules to address ambiguities and fill gaps in contracts, ensuring that the intentions of the parties are honored and that contracts function effectively. [TORT LAW ] [Week7] **Overall Summary** The introduction to Tort Law outlines the fundamental concepts, principles, and rules of tort law, emphasizing the differences between liability in tort, contract, and criminal law. It provides an overview of the tort systems in the UK, Germany (DE), and France (FR), highlighting the protected rights and interests in tort law. **Learning Objectives and Goals** - Fundamental Concepts: Describe the fundamental concepts of tort law from both common law (UK) and civil law (DE & FR) perspectives. - Case Analysis: Analyze and advise on simple tort cases from both common law and civil law perspectives. - Principles and Rules: Identify the main principles and rules of tort law. **Tort Liability & Tort Law** - Definition: Tort law deals with civil liability for damages caused to others, distinct from criminal liability. - Purpose: Aims to compensate victims and deter reckless behavior. **Types of Liability:** - Civil Liability: Accountability between individuals (private parties). - Criminal Liability: Accountability between the state and individuals, involving punishment and prevention. **The UK, FR, and DE Systems** Comparison of Tort Law Systems **Legal Framework:** - UK: The tort law system is primarily based on common law principles, which means it relies heavily on case law and judicial precedents. This results in a diverse range of specific torts, each with its own requirements and legal standards. - Germany: The German tort law system is codified, primarily found in the Bürgerliches Gesetzbuch (BGB), which provides a structured approach to tort liability. It emphasizes a systematic framework that outlines specific wrongful acts and the corresponding legal consequences. - France: French tort law is also codified, with general principles outlined in the Civil Code (Articles 1240 and 1241). It employs catch-all clauses that apply broadly across various tortious acts, allowing for flexibility in interpretation and application. **Theoretical Underpinnings:** - UK: The focus is on individual rights and the protection of personal interests. The common law system emphasizes the need for a claimant to prove fault or negligence, which aligns with the principles of personal responsibility and accountability. - Germany: The German system is grounded in the idea of social responsibility and the protection of legally protected interests. It seeks to balance individual rights with societal interests, emphasizing the need for a structured approach to liability that promotes fairness and justice. - France: French tort law is influenced by the principles of civil liability, which prioritize compensating victims for harm suffered. The system reflects a more collective approach, where the focus is on restoring the victim\'s position rather than punishing the wrongdoer. **Types of Liability:** - UK: The UK system recognizes various types of torts, including negligence, trespass, and defamation, each with specific elements that must be proven by the claimant. - Germany: German tort law distinguishes between fault-based liability and strict liability, with a clear emphasis on codified rules that govern specific wrongful acts. - France: French law also recognizes both fault-based and strict liability, with a focus on the general principles of liability that apply across different contexts. **Judicial Interpretation:** - UK: Judicial interpretation plays a significant role in shaping tort law, with courts often setting precedents that influence future cases. - Germany: The German system relies on a more formalized approach, where courts interpret codified laws and apply them consistently across cases. - France: French courts have the discretion to interpret laws based on principles of equity and fairness, allowing for a more flexible application of tort law. **Protected Rights and Interests** - **Personal Injury:** Tort law protects individuals from harm to their physical and mental well-being. This includes claims for damages resulting from negligence, intentional harm, or strict liability situations. The aim is to compensate victims for medical expenses, pain and suffering, and loss of quality of life. - **Property Rights:** Tort law safeguards individuals\' rights to their property, ensuring that any unauthorized interference or damage to property can be addressed through legal remedies. This includes torts such as trespass, conversion, and nuisance, which protect the owner\'s ability to enjoy and use their property without unlawful interference. - **Economic Interests:** Economic interests are protected under tort law, particularly in cases involving economic loss due to another party\'s wrongful conduct. This includes claims for lost profits, business interruption, and damages resulting from fraudulent or negligent misrepresentation. The law aims to ensure that individuals and businesses can seek compensation for financial harm caused by tortious actions. **Reputation and Privacy**: Tort law also encompasses protections against defamation, harassment, and invasion of privacy. Individuals have the right to protect their reputation and personal information from unlawful disclosure or harmful statements. This aspect of tort law is crucial in maintaining personal dignity and social standing. **Collective Interests:** In addition to individual rights, tort law recognizes collective interests, such as environmental protection and public safety. This includes liability for actions that cause widespread harm to communities or the environment, reflecting a broader societal responsibility. Key Takeaways Understanding the function of tort law is essential for recognizing protected rights and interests. The course will cover various jurisdictions and their approaches to tort law. [Week 8] **Overall Summar**y This lecture focuses on the conducts for which one is liable, providing an overview of the requirements of tort liability in the UK, Germany, and France. It covers the concepts of fault, intention, and negligence, emphasizing the differences and similarities in tort law systems. **Learning Goals** Identify requirements of tort liability under UK, German, and French systems. Understand differences and similarities between fault, intention, and negligence across these systems. **Systems of Tort Liabilit**y - Germany: Structured around specific wrongful conducts, harm, and requirements. - UK: Many torts, each with its own wrongful conduct, harm, and requirements. - France: General rules apply to all areas of tort liability (Articles 1240 and 1241). **Requirements of Tort Liability** Germany: - Violation of a codified normative rule. - Unlawfulness. - Fault (intention or negligence). - Causation. - Damage. France: - Fault (intention or negligence). - Causation. - Damage. UK: Difficult to generalize; specific torts must be examined (e.g., trespass to persons). **Intention and Negligence** - Fault Liability: Encompasses intentional acts or negligent acts. - Negligence: Breach of a legal duty to take care resulting in damage to another. **Key Takeaways** Tort liability requirements vary across jurisdictions but generally include violation of a normative rule, unlawfulness, fault, causation, and damage. Understanding intention and negligence is crucial for tort liability. [Week 9] **Overall Summary** This lecture focuses on the concept of strict liability, which holds individuals or organizations liable for damages or injuries caused by their actions, regardless of fault or negligence. It discusses employer\'s liability, defenses, and the differences between fault liability and strict liability in various jurisdictions. **Learning Goals** Understand differences between fault liability and strict liability. Identify requirements of employer's liability for acts of employees under UK, DE, and FR systems. **Strict Liability** Defined as liability independent of the defendant\'s fault or conduct. Focuses on the relationship one has with another person or thing, particularly in employer-employee contexts. Aims to allocate costs for socially valuable activities and improve claimant's position by eliminating the need to prove fault. **Employer\'s Liability** Employers are liable for acts of their employees during the course of employment. - Germany: Fault liability under § 831 BGB; employers must ensure proper training and supervision. - UK: Strict liability doctrine holds employers responsible for wrongful acts committed by employees. - France: Strict liability under Article 1242; employers are liable for harm caused by their employees. **Defenses and Recourse** Defenses available to employers include proving reasonable care in employee selection and supervision. Claimants must establish elements of tort, including violation of rule, unlawfulness, fault, causation, and damages. **Key Takeaways** Strict liability simplifies the process of proving liability, especially in employer-employee relationships. Different jurisdictions have varying requirements and defenses related to employer\'s liability. [Week 10] [Week 11] [PROPERTY LAW ] [Week 12] Part 1: **Philosophical & political thought** Importance of being owners of certain possessions Property interested not only by legal thinkers but also 4 other scientists - Role of possessions to the person & society - Property is a warranty of protection - Also, anarchist & communist ideas against it - Property is a human right   **Property law?** Law that deals with entitlements (rights) to objects (property) Rights that a person has against a considerable group of other persons concerning an object **Objects of property law:** - Physical objects - *Inventions, domain names, emails, messages* - *objects that belong to states (public goods)* - *animals (controversy because they r animals)* - *patent* - *Intellectual property law* **Property law in France (civil code)** - Property law part of patrimonial law - Focus on land - Based on feudal system - Land was most valuable/part of the social regime - Abolished after the French revolution 1789 - Unitary system of property rights **Property law Germany** - German civil code - Based in roman law - Right of ownership - Similar to France **Property law England & Wales** - No civil codes - Statutory law & judge made rules - Distinction between real property & personal property - Real property - Feudal basis - Judge made - Personal property - Little statutory intervention **Difference between property rights & personal rights** [Property rights ] - Entitlements to property - You can ask the world to not take way those rights from you [Personal rights] - Rights that arise from contractual tort or face to face agreements Nature Property rights (absolute nature) - Numerus clauses (closed number of property rights) - Erga omnes (against everyone else but only those rights provided by the legal system) Nature of property rights (relative nature) - Inter partes (only against the specific people) **2 tests used to qualify a right as a property right:** - Principle Numerus clausus - Number & content of property rights - Way in which these rights can be created transferred & destroyed - *E.g. right ownership, real servitude* - Principle of transparency - Specified rights obligation - Publicity - Presumption of ownership to owners (movable objects) - Reiteration? (immovables) - **Ground rules of property law** - Nemo plus juris (Nobody can transfer more rights than they have themselves) - Revindication (allows an owner to get back an object that they own) Part 2: **Division of ownership & possession made by roman law** - Ownerships = entitlements in respect of an object - Possession = factual control over an object (step that leads to the acquisition of property rights & protection of peace) **Common law system** - No concept of ownership because it belongs to the crown - Focus on possession (just prove it) - Protection of possession via tort law - Remedy = attribution of damages - Trespass - Dispossession (enter your house) & Disturbance **Civil law system** - Protection of possession - Fast judicial protection - Protection of ownership - longer - Vindication - Right to removal of interference & right to injunction - Possession & ownership protected by the legal system - Possession - 2factors - Corpus control of the object - Animus the will to hold the object as an owner - Possession will terminate when corpus or animus is lost - If only control without will= detention? - Possession is protected art 2276 \'la possession vaut titre\' - If the possessor is also an owner chose between - Possessory protection - Vindication - Acquisitive prescription of movables - balance of interests (owner & possessor) - Protection of owner - Protection of possessor in good faith [Week 13] **Types of property rights** 1. [The right of ownership] - Origin: Roman dominium - Bartolus definition (France & Germany) the right in a corporeal object to have it completely at one\'s disposal unless forbidden by law - Ownership is contrasted with the fragmentation of ownership (with the feudal system) - Dominium directum (feudal lord) -\> dominium utile (feudal tenant) - *It represents the superior estate held by the lord, while the tenant or vassal holds the inferior estate known as dominium utile. The lord retained dominium directum - the overarching ownership right. The vassal obtained dominium utile - the right to use and possess the land subject to conditions. * - Dominum utile became the right of ownership - Most extensive entitlement a person can have over an object - Unitary/indivisible nature - Content - Rights & Powers - 1st perspective: relationship between owner & object - 2nd perspective: rights of the owner vis-a-vis third parties (protection of ownership) - Art 554 French Code Civil - *\"Ownership is the right to enjoy and dispose of objects in the most complete manner, provided they are not used in a way prohibited by statutes or regulations\"* - 1st perspective: (what one owner can do with their object) - Right to possess (possesus) - Right to use (usus) - Right to enjoy the fruits (fructus)? - Right to alienate (abusus) (transfer + creation of limits property - 2nd perspective (relationship that the person has against all the other people -\> if somebody is interfering with our rights to the object, we can have a claim) - Vindication (rei vindicatio) 1. we have the right to claim an object from whoever has it without sufficient entitlement) - Injunction (actio negatoria) 2. we can claim an injunction -\> someone didn't take an object away from us but is disturbing our possession/use of the object - § 903 BGB - *\"The owner of a corporeal object can, when this does not interfere with the law or other rights of third parties, do with the object what he wishes {/deal with the thing at his discretion} and exclude others from interfering\"* - How unlimited is the right of ownership? - General principle: \" the right of ownership only stops where the rights of others begin\" - *Article 544 Civil Code: limits to the owner\'s rights - \"provided they are not used in a way prohibited by statutes or regulations\"* - *§ 903 BGB: limits to the owner\'s rights - \"when this does not interfere with the law or other rights of third parties\"* - Limitations: - By law - By contract (non-transferability clause) - Limitations in neighbour law (only immovable) - *Cour de cassation, Delafoy v. Verly* - Doctrine of abuse of rights (abus de droit) used in jurisprudence - If a party acts with the intent of causing a nuisance to his neighbour this will constitute an abuse of his right of ownership - Burden of proof - §226 BGB - Right of co-ownership - A share in the right of co-ownership 1. [Real servitude] - It is a property right granting to a neighbour access to the land of an owner - Roman law - Limited property over an immovable - Real servitude comes into existence when: - Agreement - Force of law - Features - Two owner and to pieces of land - Two pieces of land dominant and servient land near to each other - Content of the right of real servitude - The owner of servient must tolerate or not to do something - No positive duty for the owner of the servient land 1. Not force an owner to tolerate something - Benefit for the dominant land, not just for the owner - No total restriction of the powers of the servient landowner 2. [Personal Servitude] - Limited property right connected to a person as such - Immovables & movables - Right of usufruct? - Property right which grants the holder the right to use and enjoy a thing of the owner as well as a right to take the fruits this thing produces - Right to use and enjoy the object of someone else as the owner himself - Elements of the right of usufruct: - After the creation of the right of usufruct: - Usufructuary: usus + fructus - Bare owner: he/she can only transfer the (bare) ownership; he/she can no longer use and enjoy the object - - - - - - - - - - - - - - - - - Obligations of the holder of the right of usufruct - - - - - Right of Use & right of habitation - Roman origin - Strictly connected to the person to whom they have been granted Both right of use and habitation cannot be assigned nor leased (see Article 631 and 634 Civil Code) E.g. the person holding the right of habitation cannot rent the house - Person holding the rights of use and habitation: same obligations as the usufructuary (e.g. see Article 626, 627 Civil Code) 1. [Right of Superficies] - Roman law origin and legislative framework (France: Article 552 and jurisprudence of the Cour de Cassation; Germany: \$ 1 Regulation on Superficies) - Separation of the ownership of a building or construction from the ownership of a land\ Only immovables - Superficies solo credit. general rule but via agreement between parties the ownership of the building can be separated from the ownership of the land\ Important: derogation from the principle of accession - Two common situations - A grants the right of superficies to B to allow B to build a construction (ius ad aedificandum) - A builds a construction on his property, and he/she grants the right of superficies to B (ius in aedificato) - Why a right of superficies? - Advantages for the owner of the land - Advantages for the holder of the right of superficies [Week 14] *Within the common law the is a very important distinction within land and movable goods.* - *Land being considered far more important since the feudal system was never formally abolished* - *It did evolve but certain principles and terms remain*   1. Land - Numerus clausus (both the number and content of property rights is limited) - Principle - If a right is not recognized as a property right, it is not enforceable against third parties - Concept of estates - Formally the entire land of the country belongs to the crown and the others derived their rights from this right of ownership (This remains today, it has evolved) - The lands were held by a lord/the king in return of service... that land is called estate - (Legal) Estates in Land - Estates are the rights a person has over a land (2) - Fee simple estate - Absolute in possession - *A right that could be compared to the right of ownership in the common law system* - It is the most popular and the only estate of any significance today - Cases. - Lord Bernstein v. Skyviews - Anchor Brewhouse v. Berkley House - Leasehold estate - Term of years absolute - *Codified into \'the law of property act\'* - Temporary interest in land - Possession as basis of the protection against dispossession - The fact of possession plays an important role in the common law system - *The fact of ownership proves a sense of title (given as ownership can be proven like in the civil law sense)* - Entitlement to exclusive possession - Possession by several persons - Fee simple estate and other property rights may be held by several persons... co-possession (2) - Joint tenancy: no individual share, together they own it all (if one were to die it passes to the other tenant) - Tenancy in common: distinct shares for each tenant but undivided through partition (if one person dies the person has the right of successorship) - Leases - Gives its holder a right of an exclusive possession of land - It is more narrowed than fee simple given as it is created for a certain period and there must be and end term - Once it expires it comes back to the holder of the fee simple (reversion) - Covenants can also be binding upon successors in title of the lessor and the lessee? - The lease ends when the term expires (But termination is also possible) - Cases - Lance v. Chantler - Terms must be expressed with certainty - No limit to a term - Easements - Right to use a land in the possession of another - E.g. right of way, right to run drains under land, rights of light, rights of storage... - List of easements is limited (numerus clausus) - An easement can only be created when certain conditions are fulfilled - Dominant tenement (party getting the benefit of the easement) & servient tenement (party granting the burden) - Easement must \"accommodate\" the dominant tenement (tolerate the use of their land by other people) - Possessed by different people - The content of the right must be certain - No positive obligation imposed on the possessor - *Case (Ellenborough Park)* - *For right to exist as an easement it must benefit land in the possession of another* - *Like right of real servitude (civil law)* - Profits a Prendre - A right to take natural resources from a land of another - Land licences over land - Like a lease in the civil law system - A permission - Any use of land which occurs with permission of a person with a right to exclusive possession - Goods: from title to security rights over goods - Very few property rights over goods. - Numerus clausus as well but not listed clearly in legislation and case law.\ Law of property rights over goods impoverished in comparison with land. - \"Property\": often confusion between the property right in respect of a thing and the thing itself. - Two important considerations: - Feudal system never applied to goods. No doctrine of estate for goods - No concept of ownership over goods in English law - Cases: - - - - - - - - - - - - - - - - - - - - - - [Week 15] 1. Derivate and Original Acquisition of property 1. Derivative - Those rights which already exited and have already been in the hands of another person - We receive those rights from another person... therefore the transfer to - Via contact of sale - Via contract of donation - Succession/Inheritance 2. Original - Somebody requires the rights from - *An object that had not exited before* - *An abandoned object* - *When an object is attached to anthers land* - Modes - Accession of movables to land - Accession of movables to movables - Specification: making new objects - Commingling: mixing objects - Acquisitive prescription 1. **Accesion** - Originates form the roman law system (Superficies solo cedit) - One thing is considered the main and the other is considered to be an accessory (in addition to it) - Rationale (reason of preservation) - Preservation of value - Protection of third parties? - Consequences - Change of status: movable becomes part of the immovable - Owner of the land acquired the ownership of the attachment - The owner of the land acquires also the movable attached to it - German law (BGB) - §93 Components of a thing which cannot be separated without damaging or changing the nature of one of them components cannot be the objects of separate rights - *§94 Essential components of the land include objects which are firmly attached to the land, especially buildings and the products of the land as long as they are united with the land, Seeds become an essential component of the land when they are sowed, plants do so when they are planted* - *§95 (cases in which accession to land is barred) Objects attached to the land for only a temporary purpose do not belong to the components of the land. The same applies to a building or other construction attached to the land by the holder of a right over another\'s land in the exercise of its right* - French law - Art 551 Everything which is united into the thing belongs to the owner - 2 requirements: - If the removal would cause damage - If the removal would make a building incomplete 2. **Commingling** - **Eg. Liquids mixing, oil mixing...** - **German law** - Originally in Roman law 2 concepts we created - Confusio - Commixtio - Nowadays in the German code it is one single concept known as commingling - §948 If movable things are inseparably intermixed or mingled with each other, the provisions of section 947 apply with the necessary modifications. 1. UK law - Case Indian Oil Corporation Ltd v Greenstone Shipping (Panama) - *\"Where B wrongfully mixes the goods of A with goods of his own, which are substantially of the same nature and quality, and they cannot in practice be separated the mixture is held in common.\"* 1. **Specificatio** - Creating a new object out of raw material may cause specificatio - E.g. Leather to shoes - Right of ownership of the original things is extinguished and a new right of ownership originates - German law 1. Rule... The manufactured quires the ownership of the new thing unless the value of the processing is substantially less than the value of the substance