CHOSE, a term used in law in different senses. Chose local is a thing annexed to a place, as a mill. A chose transitory is that which is movable, and can be carried from place to place. But the use of the word "chose" in these senses is practically obsolete, and it is now used only in the phrases chose in action and chose in possession. A "chose in action," in its more limited meaning, denotes the right to sue for a debt or damages, whether arising out of a contract or a tort. Less accurately, the money itself which could be recovered is frequently termed a chose in action, as is also sometimes the document evidencing a title to a chose in action, such as a bond or a policy of insurance, though strictly it is only the right to recover the money which can be so termed. Choses in action were either legal or equitable. Where the chose could be recovered by an action at law, as a debt (whether arising from contract or tort), it was termed a legal chose in action ; where the chose was recoverable only by a suit in equity, as a legacy or money held upon a trust it was termed an equitable chose in action.
The courts of Common law did not originally (except in the case of negotiable instruments) recognize the assignment of choses in action. Any attempt to assign a chose in action was invalid, and if the debtor paid the assignee, he could be compelled to pay the debt over again to the assignor. The only way in which a debt could be transferred was by a new contract of a trilateral nature in which the debtor was released by the assignor, and con sented, in consideration of such release, to become liable to the assignee. This was a novation, not an assignment. But courts of equity at an early date gave effect to an assignment of a chose in action for valuable consideration, treating the assignee as an agent of the assignor with an irrevocable authority to collect and keep the proceeds. By the end of the eighteenth century the law courts adopted a similar doctrine permitting the assignee to sue in the assignor's name. Winch v. Keeley, 1 T.R. 619. In America statutes known as real party in interest statutes are common permitting the assignee to sue in his own name. In England under the Judicature Act of 1783 as amended by the Law of Property Act, 1925. permits the assignee to sue in his own name without joining the assignor, provided (a) the assignment was absolute and not by way of charge only; (b) the assignment was in writing; and (c) notice in writing was given to the debtor or party to be charged.
See Williston, Contracts, c. 14.
A chose in possession is opposed to a chose in action, and is a thing in actual physical possession. A chose in possession is freely transferable by delivery.