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First Principles of Business Law |
| Property law |
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3. Property rights in chattels |
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3.4.3. Ownership of newly created chattels |
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In his factory, Albert uses raw materials (for example wood) to make new products, such as cupboards, bench-tops and doors. He wants to know: who owns a new thing once it is made? |
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(a) A newly made thing is owned by the owner of the materials from which it was made, even if the materials were used in good faith by the maker. (b) A newly made thing is owned by the person who made it, provided that the materials were used in good faith: otherwise they belong to the owner of the materials used. |
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