Law and Property Rights
Why does the legal system promote property rights?
Written by Jason Gordon
Updated at June 23rd, 2021
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Table of Contents
How does the Law relate to Property Rights?How does law or the legal system protect or promote property rights?How does Criminal law promote property rights? How does Contract law promote property rights? How does Tort law promote property rights? How does Property law promote property rights? Discussion QuestionAcademic ResearchHow does the Law relate to Property Rights?
Government recognition of property rights and the means to enforce one's property rights through a formalized system are the primary ways in which the law or legal system contributes to property ownership.
Next Article: Common Law and Civil Law Systems Back to: INTRODUCTION TO LAW
How does law or the legal system protect or promote property rights?
The Constitution (and all amendments thereto) provides the basic structure for the Federal Government.
It also delineates the rights of all US citizens.
These rights can be viewed as a form of property that is protected against government infringement.
The structural provisions of the Constitution allow for the establishment of a legal system that further protects and promotes individual rights.
The federal, state, and local governments create and enforce laws that flow from these protections.
How does Criminal law promote property rights?
The criminal law system seeks to protect the property of individuals from harm by others.
- Example: Think of your state's criminal statutes regarding theft and vandalism.
How does Contract law promote property rights?
The contract law system allows for the formalization of relationships between individuals.
- Example: A breach of contract actions allows individuals to enforce the rights established through contract.
How does Tort law promote property rights?
Tort law allows for the remediation of or recover for harm to property suffered due to the actions or inactions of others.
- Example: Individuals can sue others for intentionally or negligently harming them or their property.
How does Property law promote property rights?
Property Law allows for the recognition of ownership rights. Also, the legal system affects property rights through the recognition of business entities. Business entities are organizational forms that have an existence separate and independent from the owners or employees of the entity. Allowing the formation of entities to carry on commercial activity has a wealth-spreading effect that allows individuals to more effectively undertake the commercial activity.
Discussion Question
Can you think of specific examples of how executive actions, criminal laws, tort laws, contract laws, or laws of business entities serve to protect property rights?
- Legal systems incorporate different laws in the protection of property rights. Since ownership of property can be interpreted in many ways, laws such as contract, business, criminal, and tort laws all play a huge role in property rights protection. For instance, a defendant on trial for battery or criminal assault may argue that his actions were justified in a bid to protect his property from the alleged victim. The law of torts, however, may restrict the use of force in the protection of property as compared to the protection of oneself or another person. Businesses and individuals also enter into contracts, especially for service provision. It is not uncommon for property right to overlap contractual rights. Take this example: Both contact laws and property rights will guide a sale of land. There are contractual rights to sue for any damages, and property rights are exercisable over the land. Failure to honor a contract by one party may lead to a lawsuit, through which the complainant seeks redress for damages.
Academic Research
- Blattman, Christopher and Hartman, Alexandra and Blair, Robert, How to Promote Order and Property Rights Under Weak Rule of Law? An Experiment in Changing Dispute Resolution Behavior Through Community Education (May 30, 2013). Forthcoming in American Political Science Review. Available at SSRN: https://ssrn.com/abstract=2268045 or http://dx.doi.org/10.2139/ssrn.2268045.