VIII. — 5:203 Combination

This Article applies where goods owned by different persons are combined in the sense that separation would be impossible or economically unreasonable.

Where one of the component parts is to be regarded as the principal part, the owner of that part acquires sole ownership of the whole, and the owner or the owners of the subordinate parts are entitled, against the sole owner, to payment subject to sentence 2, secured by a proprietary security right in the combined goods. The amount due under sentence 1 is calculated according to the rules on unjustified enrichment (Book VII); or, where the owner of the principal part effects the combination, is equal to the value of the respective subordinate part at the moment of combination.

Where none of the component parts is to be regarded as the principal part, the owners of the component parts become co-owners of the whole, each for a share proportionate to the value of the respective part at the moment of combination. If, in the case of more than two component parts, one component part is of minimal importance in relation to other parts, the owner of this part is entitled, against the co-owners, only to payment proportionate to the value of the respective part at the moment of combination, secured by a proprietary security right in the combined goods.

Paragraph (2) does not apply where the person who owns the principal part effects the combination, knowing that a subordinate part is owned by another person and that the owner of the subordinate part does not consent to combination, unless the value of the principal part is much higher than the value of the subordinate part. The owners of the component parts become co-owners, the shares of the owners of subordinate parts being equal to the value of their respective parts at the moment of combination.