A Chose in Action is a term rooted in common law, denoting a personal right to recover a debt, claim, or other monetary sum through legal action. Unlike tangible property, a chose in action is not physically possessed but rather represents the right to potential possession upon successful adjudication.
Legal Definition and Characteristics
A chose in action is essentially a right to sue and obtain a remedy for a breach of duty or obligation. It encompasses a broad range of claims and debts, including contract breaches, unpaid debts, and personal injury claims.
Types of Chose in Action
- Contractual Chose in Action: Rights arising from contract agreements, such as unpaid invoices or breached terms.
- Tortious Chose in Action: Claims for damages resulting from tortious acts, such as negligence or defamation.
- Equitable Chose in Action: Rights based on equity, including claims for specific performance or rescission.
Special Considerations
- Transferability: Choses in action can often be assigned or transferred to another party.
- Statute of Limitations: The right to sue on a chose in action is subject to limitations periods under statutory law.
- Enforceability: Enforcement of a chose in action depends on the judicial system and procedural compliance.
Historical Context
The concept of a chose in action dates back to medieval English law, distinguishing between rights that were tangible and could be physically delivered (chose in possession) and those that required legal intervention to become possessory.
Practical Examples
- Unpaid Loan: A bank has a chose in action against a borrower for the recovery of unpaid loan amounts.
- Breach of Contract: A contractor has a chose in action against a client for non-payment of services rendered.
- Insurance Claim: A policyholder holds a chose in action against an insurance company for the payout of a legitimate claim.
Comparisons with Related Terms
- Chose in Possession: Refers to tangible assets that one physically possesses, such as cash or equipment.
- Judgment Debt: A debt confirmed by court judgment, converting it from a chose in action to a chose in possession.
FAQs
Can a chose in action be sold or assigned to another party?
What are the most common types of choses in action?
How does a chose in action become a chose in possession?
References
- Glanville Williams, Learning the Law, ISBN: 0406959001.
- Frederick Pollock, The Principles of Contract, ISBN: 9781146964606.
- Claudia v. Title Insurance Corp., 36 Cal.3d 34 (1984).
Summary
In summary, a Chose in Action represents a legal right to claim or recover a debt or obligation through the judicial process. It is an essential concept in both contract law and tort law, facilitating the enforcement of rights in situations where direct possession is not possible. By understanding its nuances, both litigants and legal practitioners can appropriately navigate and leverage this powerful legal tool.
