Possession: Overview, definition, and example
What is possession?
Possession refers to the physical control or ownership of property, goods, or assets. It means having actual custody, use, or enjoyment of something. In legal terms, possession can be both actual (where a person physically holds or occupies property) or constructive (where a person has legal control over property, even if they don’t physically hold it). Possession can apply to both tangible property (like real estate, vehicles, or goods) and intangible property (like intellectual property or contractual rights).
For example, a person who holds the keys to a car and regularly uses it is said to have possession of the car. Similarly, someone who holds the rights to a patent has possession of the intellectual property.
Why is possession important?
Possession is important because it establishes control and ownership over an asset or property. It is often a key factor in determining legal rights and responsibilities. For example, in property law, possession can help determine who has the right to use, sell, or transfer the property. In cases of disputes over ownership, possession can serve as evidence of who is entitled to the property, especially in the absence of formal title or documentation.
For businesses, possession is important for ensuring proper control over assets, maintaining inventory, and protecting intellectual property. Understanding and defining possession in contracts can help avoid legal conflicts regarding ownership and use of property.
Understanding possession through an example
Imagine a business leases a commercial property. While the business may not own the property, it has possession of it, meaning it has the right to occupy and use the space for the duration of the lease.
In another example, a company develops a new software application. Even though the software might be sold or licensed to customers, the company retains possession of the intellectual property rights, which give it the ability to control its distribution, modification, and use.
An example of a possession clause
Here’s how a possession clause might look in a contract:
“The Tenant shall have possession of the leased property for the duration of the lease term, subject to the terms and conditions of this Agreement. The Landlord agrees to provide the Tenant with access to the property and ensure that the Tenant can occupy and use the property in accordance with the agreed-upon terms.”
Conclusion
Possession is a fundamental legal concept that signifies control or ownership of property, whether tangible or intangible. It determines who has the right to use, occupy, or dispose of an asset.
Clearly defining possession in contracts helps businesses avoid disputes and ensures that all parties understand their rights and responsibilities regarding property and assets. Properly managing possession is essential for maintaining control and protecting interests in both real property and intellectual property.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.