True or false: If the subject matter of a contract has passed to a third party who provided value, the original owner can recover it only if the contract was void ab initio.

The statement is true. In contract law, if the subject matter has been transferred to a third party who has provided value (in other words, the third party is a bona fide purchaser), the original owner typically cannot recover the subject matter from the third party unless the original contract was void ab initio. A contract is considered void ab initio if it is deemed invalid from the outset, meaning that it lacks legal effect or was never enforceable due to various reasons, such as illegality or lack of capacity.

When a contract is valid and enforceable, the original parties are bound by its terms, and subsequent transfers made in accordance with that contract are normally valid. If a party attempts to return to the original subject matter after a valid transfer has occurred, they face significant hurdles because the rights of the third party are generally protected, especially if they acted in good faith and without knowledge of any defects in the original contract.

In situations where the contract is valid but the original owner seeks to recover the subject matter, they would not have legal standing to reclaim their property from a third party who provided value, reinforcing the principle of protecting third-party rights in property law. Thus, the correct understanding of this principle aligns with the statement provided, confirming that only