Absolute Interest – Definition

Cite this article as:"Absolute Interest – Definition," in The Business Professor, updated June 2, 2019, last accessed October 22, 2020, https://thebusinessprofessor.com/lesson/absolute-interest-definition/.

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Absolute Interest Definition

An individual who holds an absolute interest has full rights to an asset. Absolute interest has a legal undertone, this term is used to describe total ownership to an asset, real estate, precious materials and some other properties. It also describes the wholesome right of an individual (beneficiary) to legally possess an asset or property, this also includes an entitlement to the benefits attached to the asset.

The beneficiary of an absolute interest has full rights and claims to the assets of possession and this ownership is not dependent on whether the other party is non-compliant or the properties owned by the other party.

A Little More on What is Absolute Interest

Absolute interests are not conditional interests. Whether the other party complies or not, the absolute right that a beneficiary has over an asset or property cannot be diluted, unlike conditional interests that are based on specific conditions. Both legal possession and benefits of owning property are enjoyed by an absolute interest holder or beneficiary.

For instance, an individual who buys a real estate or a machinery from its owner enjoys full ownership and legal rights to the property. Whatever the individual wishes to do with the property or machinery after purchase has nothing to do with the seller.

References for Absolute Interest

Academic Research on Absolute Interest

Towards a Definition of “Absolute Ownership, Allott, A. N. (1961). Journal of African Law, 5(2), 99-102.

Towards a definition of “absolute ownership”: II, Simpson, S. R. (1961). Journal of African Law, 5(3), 145-150.

What determines corporate ownership concentration around the world?, Qu, B. (2004). In Corporate Governance(pp. 221-246). Emerald Group Publishing Limited.

Rethinking Adverse Possession: An Essay on Ownership and Possession, Brown, C. N., & Williams, S. M. (2009). Syracuse L. Rev., 60, 583.

Convergence and its critics: what are the preconditions to the separation of ownership and control?, Coffee, J. C. (2000).

Claiming Ownership, but Getting Owned: Contractual Limitations on Asserting Property Interests in Virtual Goods, Sheldon, D. P. (2006). UClA L. REv., 54, 751.

Theories of Ownership of Oil and Gas, Laycraft, J. H., & Head, I. L. (1953). Can. B. Rev., 31, 382.

What is Meant by Private Property in Land, Tiedeman, C. G. (1885). Am. L. REv., 19, 878.

What might drive block ownership in Canadian firms? Evidence through count data models, Saihi, M., & Belanes, A. (2013). The Journal of Applied Business Research, 29(4), 1049-1060.

Editorial introduction to ‘Ownership‘by AM Honoré (1961), Hodgson, G. M. (2013). Journal of Institutional Economics, 9(2), 223-255.


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