Chose - Definition - Law Dictionary Home Dictionary Definition chose

Definition :

Chose [Fr., a thing]; it is used in divers senses, of which the four following are the most important:--

(1) Chose local, a thing annexed to a place, as a mill, etc.

(2) Chose transitory, that which is movable, and may be taken away, or carried from place to place.

(3) Chose in action, otherwise called chose in suspense, a thing of which a man has not the possession or actual enjoyment, but has a right to demand by action or other proceedings, as a debt, bond, etc. A well-known rule of the Common Law was that no possibility, right, title, or thing in action, could be assigned to a third party, for it was thought that a different rule would be the occasion of multiplying litigation: as it would in effect be transferring a lawsuit to a mere stranger, though the assignee might, at law, and was assisted in equity to sue the debtor in the name of the assignor. At law, therefore, with the exception of negotiable instruments, an interesse termini, and some few other securities, this until 1873 continued to be the general rule, unless the debtor assented to the transfer; if he assented, then the right of the assignee was complete at law, so that he might maintain an action against the debtor, upon the implied promise to pay him the debt, which results from such assent. In equity, however, this rule of the Common Law was entirely disregarded, and from a very early period choses in action of all kinds were held to be freely assignable for valuable consideration; see Ryall v. Rowles, W&T LC and notes thereto.

By the (English) Law of Properties Act, 1925, s. 136(1), replacing the (English) Jud. Act, 1873, s. 25(6), any absolute assignment by writing under the hand of the assignor (not purporting to be by way of charge only) of any debt, or other legal thing in action of which express notice in writing has been given to the debtor, trustee, or other person from whom the assignor would have been entitled to claim such debt, etc., is effectual in law (subject to equities having priority over the right of the assignee) to pass and transfer from the date of such notice (a) the legal right to such debt or thing in action; (b) all legal and other remedies for the same; and (c) the power to give a good discharge for the same without the concurrence of the assignor, subject to certain provisions contained in the s.. See also the (English) Policies of Assurance Act, 1867 (30 & 31 Vict. c. 144). This s. 136 of the J. a. Act, 1925, is not confined to the assignment of legal choses in action; it includes any right which was properly assignable inequity, see Torkington v. Magee, 1902 KB p. 430, and 1903 (1) KB 644, for cases on the construction of the section.

The above enactment does not, how ever impair or affect the validity of equitable assignments in any way, and there may still be a good equitable assignment quite outside the statute, William Brandt's Son v. Dunlop Rubber, 1905 AC 454; but see Performing Right Society v. London Theatre of Varieties, 1922 (2) KB 433, as to parties. as to the assignment of contracts, see Tolhurst v. Portland Cement Manufacturers, 1903 AC 414; Kemp v. Baerselman, 1906 (2) KB 604. In Re Park Gate Waggon Company, (1881) 17 Ch D 234, it was held that a 'thing in action' under s. 95 of the (English) Companies Act, 1862 (see now s. 191 (2) of the (English) Companies Act, 1929), included claims in a winding-up against directors for misfeasance.

Part of a debt is not assignable in law under this enactment but the assignee of the part is entitled to it in equity, Bank of Liverpool & Martins, Ltd. v. Holland, (1926) 43 TLR 29. S. 136, L. P. Act, 1925, transfers the legal right: it should not be confused with the rule on Dearle v. Hall, 3 Rus. 1, and s. 137, which regulates the priorities of assignments without affecting the legal right. See NOTICE, and the s. does not apply to assignments which require special formalities bylaw or under the (English) Companies Act, 1929, such as an assignment of shares, under that Act, if the Memorandum or Articles of Association prescribe the formalities.

(4) Choses in possession, where a person has not only the right to enjoy but also the actual enjoyment of the thing.