Chattel

Definition

Chattel refers to any tangible, movable personal property. This is distinguished from real property, which refers to immovable property such as land and buildings. Essentially, chattel encompasses personal belongings that can be physically relocated from one place to another. This term is often used within the realms of law, accounting, and business.

Examples

Household Furniture: Chairs, tables, and sofas that can be moved from one residence to another.
Vehicles: Cars, motorcycles, and boats fall under chattel as they are personal property and can be moved.
Electronics: Laptops, smartphones, and other gadgets that can be transported are considered chattel.

Frequently Asked Questions

What is the difference between chattel and real property?

Chattel refers to movable personal property that can be physically transferred. Real property, on the other hand, refers to immovable property like land and buildings.

Can chattel be used as collateral?

Yes, chattel can be used as collateral for securing loans. Examples include using a vehicle or equipment as security for a loan.

Are leases considered chattel or real property?

Leases can be complex, but typically, the physical property that is leased out (like equipment or vehicles) would be considered chattel, while the lease contract itself may be classified differently.

What are chattel mortgages?

A chattel mortgage is a loan agreement where the borrower provides movable personal property as security for the loan, different from a traditional real estate mortgage where real property is used as collateral.

Is intellectual property considered chattel?

No, intellectual property such as patents, copyrights, and trademarks are not considered chattel because they are intangible.

Personal Property: Items owned by an individual that are movable, in contrast to real property.
Real Property: Land and anything attached to it, which cannot be moved.
Goods: Tangible products that are both movable and can be sold or bought.
Tangible Assets: Physical items of value owned by an individual or business.

Online References

Suggested Books for Further Studies

Black’s Law Dictionary by Bryan A. Garner
Business Law: Text and Cases by Kenneth W. Clarkson, Roger LeRoy Miller, and Frank B. Cross
Fundamentals of Financial Management by Eugene F. Brigham, Joel F. Houston

Fundamentals of Chattel: Legal Studies Basics Quiz

### What is the primary feature that distinguishes chattel from real property? - [x] Chattel is movable. - [ ] Chattel is immovable. - [ ] Chattel is used for residential purposes. - [ ] Chattel increases in value over time. > **Explanation:** The primary feature that distinguishes chattel from real property is that chattel is movable, while real property is immovable. ### Can a car be classified as chattel? - [x] Yes - [ ] No - [ ] Only if it is not under a lease - [ ] Only if it is fully paid off > **Explanation:** A car can be classified as chattel because it is movable personal property. ### Which of the following would NOT be considered chattel? - [ ] Furniture - [ ] Cash registers - [x] A house - [ ] Jewelry > **Explanation:** A house would not be considered chattel because it is immovable real property. ### What kind of property is a laptop considered? - [ ] Real property - [x] Chattel - [ ] Intellectual property - [ ] Partnership property > **Explanation:** A laptop is considered chattel because it is tangible and movable personal property. ### Can chattel be utilized as collateral in a loan agreement? - [x] Yes - [ ] No - [ ] Only if it is less than three years old - [ ] Only if agreed upon by the state > **Explanation:** Chattel can be used as collateral in a loan agreement, a practice known as a chattel mortgage. ### Which of the following can be a subject of a chattel mortgage? - [ ] A piece of land - [x] A vehicle - [ ] A building - [ ] An easement > **Explanation:** A vehicle, being tangible and movable, can be a subject of a chattel mortgage. ### How do tangible assets differ from intangible assets? - [x] Tangible assets are physical items. - [ ] Tangible assets are non-physical items. - [ ] Tangible assets are always higher in value. - [ ] Tangible assets cannot be used as collateral. > **Explanation:** Tangible assets are physical items, unlike intangible assets which are non-physical. ### What type of property is personal property that can be moved considered? - [ ] Real property - [x] Chattel - [ ] Intellectual property - [ ] State property > **Explanation:** Personal property that can be moved is considered chattel. ### Is a leased photocopier classified as chattel? - [x] Yes - [ ] No - [ ] Only after the lease ends - [ ] Only if it is for commercial use > **Explanation:** A leased photocopier is considered chattel since it is movable and tangible. ### What is NOT a characteristic of chattel? - [ ] It is movable. - [ ] It is tangible. - [x] It is immovable. - [ ] It can be personal property. > **Explanation:** Chattel is not immovable; it is characterized by its tangible and movable nature.

Thank you for exploring the detailed aspects of chattel and for testing your knowledge with our quiz. Keep advancing in your legal and financial education!