This article describes 8 differences between Possession in Law and Possession in Fact.
Possession in Law
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It is related to law.
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Possession in law means the possession is recognized by law.
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I have purchased a scooter. I possessed it. My possession of the scooter is recognized by law. I purchased a house, and got registered in my name. I am the lawful owner. My possession over that house is possession in law.
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It is de jure recognition.
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Sometimes, the property is not in the possession of the owner. Still it is recognized by law. Example: building owner and tenant.
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The master sends his servant on a work by giving his cycle. The master is the possessor in eye of law even though he is not in the possession of bicycle. He is the owner of the cycle. It is recognized by law.
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Possession in law has proprietary remedies.
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I lost my gold ring on road. Even though, I lost of possession of it, I am the owner of it in the eye of the law.
Possession in Fact
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It is Actual. It is related to fact.
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Possessions in fact need not to be one which is to be recognized by law.
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X stole my scooter. The scooter is in possession of X. it is a fact. The possession of X is a possession in fact. But it is not recognized by law.
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It is only de facto.
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It may be representative possession. Concurrent possession, derivative possession etc.
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The servant has possessed bicycle of the master. It is possession in fact.
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Possession in fact has possessory remedies.
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The finder if the gold ring is in possession in fact. He is not recognized as poser in law.