Properties: Overview, definition, and example
What are properties?
Properties refer to assets or items owned by an individual or business, which can be either tangible (physical) or intangible (non-physical). Tangible properties include real estate, equipment, and inventory, while intangible properties might include intellectual property, patents, trademarks, or rights to software. Properties are generally considered valuable assets that can be bought, sold, leased, or otherwise managed under legal terms.
For example, a commercial building owned by a company is a tangible property, whereas a brand name is an intangible property.
Why are properties important?
Properties are important because they represent key assets that contribute to the value of an individual or business. They can generate income, provide security (as collateral), and are often critical to operations or strategic goals. Managing properties effectively is essential for financial growth, asset protection, and long-term sustainability.
For businesses, managing both tangible and intangible properties is critical for maintaining competitive advantage, complying with legal requirements, and ensuring operational continuity.
Understanding properties through an example
Imagine a company owns office buildings in multiple locations, which are used as a base for its operations. These real estate properties are considered valuable assets that contribute to the company’s overall net worth. The company may also hold patents for unique products, which are intangible properties that add to its intellectual property portfolio.
In another example, a publishing company may own the rights to several bestselling books, which are intangible properties that generate royalties. These properties are valuable business assets that are protected under copyright laws.
An example of a properties clause
Here’s how a properties clause might look in a contract:
“The Tenant acknowledges that the Premises are leased by the Landlord, and all rights to any Property located within or associated with the Premises shall remain with the Landlord, unless otherwise stated. The Tenant agrees not to sell, lease, or transfer any Property within the Premises without prior written consent from the Landlord.”
Conclusion
Properties are essential assets that can provide financial and operational benefits to businesses. Proper management and legal protections for both tangible and intangible properties help businesses build value, secure their interests, and achieve long-term success.
By including clear properties clauses in agreements, businesses can safeguard their assets, ensure clarity of ownership, and avoid disputes over asset usage or transfer.
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.