ACQUISITION OF THE OWNERSHIP RIGHT TO THE RECYCLED ITEM

Abstract

The author of the article has established that the acquisition of the ownership right to the recycled item belongs to the primary (initial) grounds (methods) of acquisition of the ownership right. A compromise decision was recorded in times of the Ancient Rome regarding the establishment of the owner for a recycled item: if a new item can be converted back into the material it was made of, then the owner will be the material’s owner, if not the ownership will belong to its creator – the craftsman. The author has argued that a person who recycled an item can acquire the ownership right to a new item in the manner specified in the Art. 332 of the Civil Code of Ukraine according to the following elements: 1) the material that did not belong to the item was used for its processing by the ownership right, that is, someone else’s item (material); 2) the cost of processing and creating a new item exceeds the cost of the material; 3) such excess is significant; 4) the person who recycled the item has a desire to acquire the ownership right to the new item; 5) the person who recycled the item (material) is in good faith. These factors should be the main ones while distinguishing between the processing of an item and capital or current repair of an item, even if the capital repair of an item leads to significant improvements of the item and significant increase in its value. It has been clarified that the created new item as a result of material processing will have a new functional purpose, but will not be an improvement of the item that was processed, or its benefit, revenue. Under all circumstances, a new item is created after being recycled, and the current or capital repair of an item leads to an item’s change, a new item is not created. Particular attention has been paid to the need for a more thorough regulation of civil relations regarding the acquisition (termination) of the ownership right to objects that have important national economic and defense significance and are the state property of Ukraine.