Classification of

Objects of Property

Kokebe Wolde
Classification of Objects of Property

 Things/goods which are objects of property are classified

into different categories:-
−Movable vs immovable
−Corporeal vs incorporeal
−Intrinsic element vs accessory
−Public domain vs private domain
−Consumable vs non-consumable
−Fungible vs non-fungible
−Divisible vs non-divisible
−Principal vs fruit
 Classification of Objects of Property ….ctd.
 Movables vs immovables
 The most important of the classifications.
 Art.1126 states this classification: “All goods are movable or
immovable”
 But there is discrepancy between the Amharic and the English
versions.
 The Amharic version states: “ግዙፍነት ያላቸው ነገሮች ሁሉ ተንቀሳቃሽ የሆኑ
እና የማይንቀሳቀሱ ናቸው“ (All corporeal goods are either movable or
immovable)
 The English version seems to be correct.
 Considering Arts 1127 & 1128;
 Article 106 Com. C.
 French Civ. C.
 General literature.
 Movable vs. Immovable….ctd.
 WHY is it necessary to study classification of objects of property
into movable and immovable?
 Because the law regulates them differently. The law regulates
both as objects of property but differentially.
 The manner of acquisition, enjoyment, proof and extinction of
property rights differs greatly depending on the type of object.
 So, we need to study which things are regarded as movables
and which ones as immovable. Because classifying things as
movable or immovable has different effects as different set of
rules apply to them.
Movable vs. Immovable….ctd.
 But, WHY did the law regulate movable and immovable
differently?
 To use/exploit the physical characteristics of
immovability.
- The fixed nature facilitates effective publicity in
connection with legal proceedings.
 Most importantly the differential regulation has to do
with economic valuability.
- For society, immovables are more valuable than
movables.
Movable vs. Immovable….ctd.
 Movables
 There are three different sub-categories of movables:
- Movables by nature,
- Movables by anticipation, &
- Movables by fiction of the law/Incorporeal movables
 Immovables
- Immovables by nature
- Immovables by destination
 Movables
1. Movables by nature (MbN)
 Objects which can move by their own or be moved by external
power without losing their identity.
 So movables by nature are things that:-
- Have material existence: are physical objects perceivable by the
sense organs; have body and occupy space.
- Are movable by their nature:- can move itself from one place to
another (animate things) or have the capacity to be moved
(transported) from one destination to another by an agent
(external power)
- Without losing their individual character (without being uprooted,
detached or damaged).
Movables ….ctd.
1. Movables by nature ….ctd.
 It will be regarded as such (movable by nature) even though its
entire existence may have fixed place according to the wish of
the right holder.
 Movables by nature are further classified into (Art 1186 Civ.C.):-
- Special movables:- vehicle, ship, train, aircraft, TV set, fire arms.
More stringent regulation; required to be registered.
- Ordinary movables:-
Not subject to stringent regulation.
Movables ….ctd.
2. Movables by anticipation (MbA)
 These are objects that are immovable by their nature – they
cannot move or be moved; but they are regarded as movable
in the eyes of the law.
 This happens when there is an anticipation of factual
separation or detachment of the objects.
 This includes:-
-Art 1133(2): trees & crops
- Art 2268 – materials of a building to be sold by demolition
- Quarry
- Other intrinsic elements of an immovable
Movables ….ctd.
2. Movables by anticipation ….ctd.
 Naturally these things are to be regarded as intrinsic
elements (component parts) of the land or building they are
attached to.
 In so far as there is the factual attachment or connection, they
are treated as part of an immovable by nature – hence
immovable.
 But, if some legal transaction implied their separation in the
near future, they will be treated as movables.
 This is so because, following the legal transaction, there is the
anticipation or expectation that these things will be changing
their status from immovability to movability.
Movables ….ctd.
2. Movables by anticipation ….ctd.
 Generally, four conditions must be fulfilled for a thing to be
considered as movable by anticipation.
1. The thing must be an immovable by its nature.
2. The thing must have the potential to exist as a self-sufficient
movable; must be detachable so as to exist as movable.
Not all immovables have the potential to become or considered as
movable by anticipation. Because, some immovables have no natural
potential to change their status from immovable to self-sufficient
movable.
3. The thing must be one whose separation (de-immobilization) is
anticipated.
4. There has to be a valid juridical act implying the separation.
Movables ….ctd.
2. Movables by fiction of the law/Incorporeal movables
 These are incorporeal things which are considered by the law
as movables.
 Unlike MbN & MbA, these category of movables have no
material existence. As such, they cannot move be moved in
the real sense of the term.
 Their movability is only in the eyes of the law. The economic
interests over certain creations of the mind are regarded as a
thing, a movable one. These includes:
-Business - (Art. 106 Com.C. (New))
-Securities to bearer(StB) - (Art . 1128 Civ.C.)
Movables ….ctd.
3. Movables by fiction of the law ….ctd.
 Why only securities to bearer, and not other types of
securities?
 StB are documents or instruments that embody pecuniary
interests in them.
 These are one type of those types of
documents/instruments called Negotiable Instruments (NI).
 Negotiable instruments are documents embodying rights to
entitlement/payment in cash or in kind; the rights cannot
be transferred separately from the document. These
includes:-
Movables ….ctd.
3. Movables by fiction of the law ….ctd.
o Commercial instruments ((BoE, cheques, travelers cheques,
promissory notes);
o Transferrable securities;
o Documents of title to goods;
o Shares;
o Treasury bills;
o Insurance policy;
o Bill of lading;
 According to Art. 719 Com.C.(Old), form wise NI may be:
• in specified name;
• to order;
• to bearer (securities to bearer)
 Movables ….ctd.
3. Movables by fiction of the law ….ctd.
 Then why does the law (Art. 1128 Civ.C.) pick only securities to bearer? Why
not other forms of NI?
 Reading of the following provisions gives us clues as to whether the
categorization as movable includes other forms of securities (NI).
o Art. 271 Com. C. (New) – shares in share companies;
o Art. 697 Com. C. (Old) – insurance policy;
o Art. 729 Com. C. (Old) – negotiable instruments in general;
o Art. 1260 Civ. C. – shares generally;
o Art. 2817 Civ. C. – documents of title to goods;
o Art. 2829 Civ. C. - claims;
 So, they come under the categorization of movables.
 What about patents, copyrights, trademarks, etc.?
 Immovables
 There are two categories of immovables:-
-Immovables by nature;
-Immovables by destination/Immobilization by Law:- accessories
of an immovable
Immovables
1. Immovables by nature.
 No clear definition provided by the law.
 However, it is possible to construct a definition for immovables by nature
based on:
- Acontrario reading of Art. 1127
- Enumerations of immovables by the law.
 Thus we can say that immovables by nature are:- corporeal things that
cannot move themselves or be moved without losing their individual
character, because either it is land or something fixed to land. They are
fixed, naturally immovable corporeal objects.
o Art. 1130 mentions land and buildings as immovables;
o Art. 1133(1) mentions trees and crops as immovables;
 Immovables ….ctd.

1. Immovables by nature …ctd.

Land: is the basic immovable to which all other things must
be attached to qualify as immovable by nature.

When we say land we are not referring to the earth in its

entirety; rather we are referring to plots of land that are
appropriated/parcels of land with boundary marks
 Immovables ….ctd.
1. Immovables by nature …ctd.
Trees & Crops: trees and crops of all sort are considered as
immovable by nature. This status may change into movable by
nature by separation or movables by anticipation by anticipation
of separation.
 Art. 1133(1) designates crops & trees as intrinsic elements of the land,
not as separate and self-sufficient immovable. In other jurisdictions
(eg. France) they are treated as immovable by their own, distinctly
from the land they are grown on.
 If considered intrinsic element of the land, it means that they belong
to the owner of the land by application (Art. 1131).
 This status of trees and crops should be considered as changes since
1974.
Immovables ….ctd.
1. Immovables by nature …ctd.
 Buildings: Another type of immovable by nature.
 The term ‘building’ should be understood very broadly to include
any structure installed or erected on land; any man-made
structure attached to land or placed on land but in a fixed
place/with relative permanency.
 Thus the following are immovables: house, office & hotel
buildings; dams; dry docks; bridges; sewer systems; electric &
telecom installations; water & gas pipes; canals; lighthouses;
fortifications; roads; railway lines; party-walls; ditches; wells;
fences; dikes; barns; gas tanks; depots.
 In addition, intrinsic elements of these buildings are considered
as immovables. Eg. Electric, water and gas installations; doors;
windows; locks; lavatories; closets; sinks; heaters; balconies;
elevators; handrails; are regarded as immovables.
 Immovables ….ctd.
2. Immovables by Destination.
 Things considered as immovable by destination are normally movables
by nature; they also preserve their identity as self-sufficient movable
thing.
 But because of their functional close association with an immovable by
nature, they are categorized as immovable. This is not because they are
immovable or attached to an immovable, but because of their close
association or destination to the use or exploitation of an immovable by
nature, they are regarded as accessory to the immovable and, by the
fiction of the law are regarded as immovable for policy reason.
 Some movable objects are usually destined to serve the commercial,
agricultural or industrial exploitation of an immovable by nature or to
increase its aesthetic value.
Immovables ….ctd.
2. Immovables by Destination….ctd.
 Since they form economic unity with the immovable (not material
unity) they are considered as immovable.
 Effect of such classification: in legal transactions it follows the
principal immovable.
 Purpose of such classification: to ensure the continued economic
exploitation of immovables by nature.
Corporeal vs Incorporeal
 The critical test for classifying goods (objects of property)
into corporeal and incorporeal is human perception.
Corporeal goods
 Objects of property which can be perceived by human sense
organs.
 Includes both animate and inanimate things.
Incorporeal goods
 These are economic/pecuniary interests perceivable only by the
human mind; Do not have physical/material existence and as such
cannot be perceived by the sense organs.
 Examples include: copyright, patent, industrial design, industrial
models, trademark, trade secret, business, claims embodied in
negotiable instruments, shares, insurance policy.
 Corporeal vs Incorporeal ….ctd.

 Legal import of the classification:

 Special laws govern the manner of ‘acquisition’, enjoyment, transfer

and extinction of property rights over incorporeal goods: intellectual
property laws (copyright law, patent law, trademark law, business
law, etc.)
 In the Civ. C. there are some legal provisions applicable only to
corporeal goods (Arts. 1325-1346) and other provisions to
incorporeal goods only (eg. Arts. 1347-1352).
 Intrinsic elements and Accessories
 Depending on its nature or make up an object of property (movable
or immovable) may consist of only one substance (a simple thing)
or it may be composed of several component parts or its
exploitation may depend on its association with another thing.
 The concepts of intrinsic element and accessory relates to the
later category of objects of property
 The things/component parts may have a different role/contribution
to make up or complete the principal composite thing.
Intrinsic elements and Accessories ….ctd.

 Some of the component parts may be a necessity for the

principal thing to exist as a self-sufficient, complete object of
property.
 Without that element the principal thing may not exist or,
even if it exists, it may not give its expected service.
 Such component parts of a principal composite thing are
referred to as essential elements or intrinsic elements.
 Intrinsic elements and Accessories ….ctd.

 On the other hand, some other component parts may not be

necessary to complete the principal thing as a self-sufficient
object of property.
 Rather, they may have come to the principal thing to broaden its
scope of serviceability or to maximize the economic exploitation of it.
 Such component parts are called non-essential component parts or
accessories of the principal object.
 Arts. 1131 – 1139 concerns intrinsic elements and accessories.
Intrinsic elements and Accessories ….ctd.
1. Intrinsic Element (Arts 1131 – 1134)
 Art. 1132 provides 2 independent tests to qualify component parts as
intrinsic element:
1st test: According to Art. 1132(2), for a thing to qualify as intrinsic element, two
conditions must be fulfilled:
 there has to be material union of the thing with the principal composite
thing, and
 detachment of the thing must be impossible or, even if possible to separate
or detach the thing, it causes damage to the thing.
 If a certain thing fulfills these two conditions then it is an intrinsic element.
 A number of things forming component part or association with an immovable
or movable fulfill this attribute of intrinsic element.
Eg. look at the component parts of a building, a chair, a vehicle.
 Intrinsic elements and Accessories ….ctd.
1. Intrinsic Element (Arts 1131 – 1134) …ctd.
2nd test: According to Art. 1132(1), anything which by custom is
regarded as an intrinsic element.
 Here, unlike the above test, no material union or attachment is
required.
 Rather, it is the customary treatment of a given thing as
component part/part and parcel of another thing that determines
its status as intrinsic element.
 Eg. Pan & its lid; pen & its cap; Pc & its monitor or mouse; TV & its
antennae or remote control; a cellphone & its charger.
 The general quality or characteristics of intrinsic elements is that
they cannot give utility separately from the principal (but always
have economic value)
 Intrinsic elements and Accessories ….ctd.
1. Intrinsic Element (Arts 1131– 1134) …ctd.
 Legal effect of classification as intrinsic element.
1. The movable that has become an intrinsic element will cease to
be a distinct thing: no more self-sufficient object of property
right. No in rem right will be established on it as separate object
of property right. (Art. 1134(1)).
2. Any juridical act that involves the principal object also affects the
intrinsic element. (Art. 1131).
 So, when the principal thing is donated, sold, pledged,
mortgaged, seized, attached, it also affects the intrinsic elements
of that thing.
 Intrinsic elements and Accessories ….ctd.
1. Intrinsic Element (Arts 1131 – 1134) …ctd.
 Legal effect of classification as intrinsic element…ctd.
3. Any right which third parties have on the thing that became intrinsic element
will extinguish from the moment the thing became an intrinsic element.
 Instead, the right holder on the principal thing will become holder of right
on the thing converted to intrinsic element. No reclaiming the thing or
right to recovery. Art. 1206 not applicable, because:
 Sometimes it is impossible to take the thing back;
 It is uneconomical – since taking back may damage the principal thing or render it
useless.
 Remedy for the third part
 Claim compensation under extra-contractual and unjust enrichment law.
 Joint ownership (Art 1183(1))
Intrinsic elements and Accessories ….ctd.
2. Accessories (Arts 1135 – 1139)
 Accessories are things in close association with another
movable or immovable to maximize its utility.
 Art 1136 provides definition of an accessory. An accessory is:
 “any thing” – any object of property
 “destined” – the thing must be destined (allocated/assigned)
to another thing. In other words, the thing should create an
association with some other thing (movable or immovable;
corporeal or incorporeal). However no physical attachment is
necessary.
Intrinsic elements and Accessories ….ctd.
2. Accessories (Arts 1135 – 1139) …ctd.
 “permanently” the destination of the thing should be
permanently.
 “for the use of the principal thing”: the destination has to be
for the purpose of using or exploiting the principal thing.
 “by the owner or usufructuary of the principal thing”: only the
owner or usufructuary has the power to create the status of
accessory; not the owner or usufructuary of the accessory
thing.
 Intrinsic elements and Accessories ….ctd.
2. Accessories (Arts 1135 – 1139) ...ctd.
 Effect of classification as accessory
1. The thing that has become accessory will lose its status as an
independent, separate and distinct object of property right.
2. Regarding effect on movability/immovability, it depends on the
nature of the principal thing.
3. Rights on, or dealings relating to the principal shall also affect
the accessories in doubtful cases. Art.1135.
4. Effect on the rights of third parties on the thing turned into
accessory: Art. 1138.
 Termination of accessory status
 Consumable vs Non-consumable things.
Basis/criteria for the classification
 This classification applies to corporeal goods.
 The main criteria for this classification is whether the thing extinguishes or
is depleted on first use.
 If a thing is extinguishable depleted upon first use, it is consumable.
 If a thing continues to exist in spite of repeated use, it is non-consumable.
 Non-consumable things remain the same when used normally and are only
subject to normal wear and tear
 Extinction of consumable thing could be the result of physical act (eg.
consumption of food or drink or pre-paid air time or internet data) or legal
act (eg. alienation of money or stock). In all cases an action/disposition is
taken which cannot be repeated with regard to the same thing.
 Consumable vs Non-consumable things ….ctd.
Effect of the classification
 Law of usufruct
 The beneficiary of a usufruct over a non-consumable thing is
required to properly manage the object and return it to the owner
when the usufruct expires. (Arts 1312 & 1317)
 On the contrary, the beneficiary of usufruct over a consumable object
is not required to restitute the object of the usufruct to the owner
upon the termination of the usufruct. In effect ownership is
transferred to him upon creation of the usufruct.
 However, the usufructuary is under obligation to pay the value of
such thing. (Art. 1327).
 Only non-consumable things can be the object of loan for use or be let
or hired. Arts. 2727-2766 & Arts. 2767-2778.
 Fungible vs Non-fungible things.
Basis/criterion for the classification
 The criterion for this classification is whether a thing can be replaced by or
exchanged with another thing of same type, quality and quantity.
 Fungible things belong to a certain generic class of things that can be replaced by
any other similar thing.
 They do not have any characteristics that make them so unique as to be
considered irreplaceable.
 A thing is fungible if it can be substituted by another thing of same genre and has
the same physical characteristics. Eg. coffee of a particular variety.
 In trade fungible things are normally referred to in terms of number, weight or
measure.
 Fungible vs Non-fungible things ….ctd.

 A non-fungible thing is a thing which can not be replaced by or exchanged with

another thing.
 Non-fungible things are considered irreplaceable because they have unique
characteristics or value. Eg. a painting
 A fungible thing may become a non-fungible thing in certain circumstances, for
example for sentimental reasons.
Effect of the classification
 In property law, the transfer of possession (and thus ownership) over ordinary movable
fungible things is effected when the seller individualizes the thing (picks /singles it out)
or weighs, counts or measures the required quantity of things from stock and makes
declaration to that effect.
 In contract law, Arts. 1747, 1778, 1969, 1832.
Principal vs Fruits.
Definition
 Applies for both corporeal and incorporeal things
 A ‘fruit’ is a thing produced periodically without diminution of the value,
content or importance of the principal thing. Art. 1170(2)
 Fruit can be natural or artificial (civil & industrial)
 Principal thing is the thing that gives rise to the fruit.
Legal effect of classification
 The legal effect of this classification relates to the attribution of ownership
over the fruits. It helps us to answer the question: who should own periodical
increments to a thing?
 In principle, the person who owns the principal also owns its fruits.
 Exceptions: Usufruct & income from personal property of spouses under the
Family Law.
 Divisible vs Indivisible things.
Definition
 Applies for both movables and immovable things
 Divisible things can be split into several units which can be assigned for
individual ownership.
 For the purpose of the law, a thing is divisible if it can be physically
divided without reducing its economic value or impairing its utility (the
purpose for which it is made).
Legal effect of classification
 This classification is important in case of jointly owned property or
common property of spouses. How do you deal with a property jointly
owned when one of the owners claim their share?
 Public Domain vs Private Domain.
 This classification applies to property owned by the State.
 Art. 1444 presents this classification.
 Definition
 A public domain thing is a thing owned by the state and which is dedicated
to public service or use. Art. 1445.
 Arts. 1446,1447 & 1448 list certain things which are deemed by the law as
forming part of the public domain.
 Roads, streets, canals, railways, seashores, port installations, lighthouses,
fortification, water ways, lakes, and underground water. Public squares,
parks, public library, etc.
 Property owned by the state which does not fulfill the general criteria
under Art. 1445 or doesn’t fall within the list in Arts 1446-1448 is in the
private domain of the State.
 Public Domain vs Private Domain.
Legal effects of the classification
 Different legal regimes govern the property of the state in its public and
private domain.
 Property belonging to the private domain of the State is governed by
Private Property Law rules (Arts. 1126 – 1443). All those rules in the Civil
Code and in other laws governing private property matters will apply to the
property of the state in its private domain.
 Property of the state belonging to its public domain is governed by Arts.
1445 – 1459. As per these rules, property belonging to the public domain is
inalienable, imprescriptible, and not susceptible to acquisition of ownership
by possession in good faith, usucaption, occupation or accession.
Private vs Collective vs Common vs Public Domain things.
Private things
 Things that can be/or are owned privately (sole ownership or joint ownership).
Collective things
 Things which under the law are owned by collectivity. In Ethiopia collective ownership
relates to the ownership of land, water and other natural resources by the nations,
nationalities and people of Ethiopia. Collectively owned things are not susceptible for
private ownership. Individuals can have in these things a right that is less than ownership.
Common things
 Things under no ones exclusive control; anyone can make use of them without excluding
others. Air, sun, literary and artistic works and inventions after the expiry of the copyright
or patent.
Public domain things
 Owned by the state and made available for use by the public or to provide public service.
Appropriable vs Non-appropriable things.

Appropriable things
 Things not owned but susceptible to ownership.
 Res nullius susceptible of ownership (has never been owned but
susceptible of ownership)
 Res derelictae (things which were appropriated but abandoned)
Non-appropriable things
 Res nullius insusceptible of ownership or appropriation:
common things;
 Things excluded by law from appropriation (Eg. Illicit drugs)