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a file's permissions are separated in to 3 categories. one for the owner (witch can be modified by CHOWN), one for the group (also CHOWN) and one for the rest.
What CHMOD does is modify what permissions the owner, the group and the world have, while the CHOWN modifies the actual owner or group.
If I for example have created a file with no rights to the group and the rest, but full rights to the owner, and i CHOWN the file to another user, I will have no permissions on it.
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