A Chose in Possession refers to tangible assets that one physically possesses, such as cash, equipment, or any other form of physical property. The term originates from English common law and is used primarily in the context of property and legal rights. It differentiates from “chose in action,” which refers to intangible rights that can only be claimed or enforced through legal action.
Types of Chose in Possession
Personal Property
Personal property or “movable property” includes things like vehicles, furniture, and electronics, which can be physically moved from one place to another.
Cash and Liquid Assets
Cash, coins, and other monetary assets fall under this category and are considered choses in possession as they can be physically held.
Inventory and Equipment
Machinery, business equipment, and inventory used in business operations are also examples of choses in possession because they are tangible and can be taken physical control of.
Special Considerations
Ownership and Possession
Ownership does not necessarily mean possession. One may own a chose in possession but may not physically possess it, and vice versa.
Legal Implications
Chose in possession are subject to various legal considerations, including taxation, transfer of ownership, and security interests.
Examples of Chose in Possession
- Cash: Physical currency like banknotes and coins.
- Vehicles: Cars, trucks, and motorcycles.
- Electronics: Computers, smartphones, and other gadgets.
- Real Estate Improvements: Fixtures and fittings in a property that can be moved.
Historical Context
The concept of chose in possession dates back to the times of common law in England. Historically, the distinction between tangible (chose in possession) and intangible (chose in action) property was crucial in legal contexts to determine how properties and rights would be managed, transferred, or inherited.
Applicability
Legal Framework
In legal proceedings, recognizing the difference between choses in possession and choses in action can influence how claims are made and resolved.
Financial Transactions
For financial and accounting purposes, choses in possession are treated as assets on balance sheets and can be subject to depreciation.
Comparisons
Chose in Action vs. Chose in Possession
- Chose in Possession: Tangible, can be physically controlled and transferred.
- Chose in Action: Intangible, a right to sue, or seek the recovery of a debt or damages.
Related Terms
- Intangible Assets: Assets that lack physical substance, such as patents, copyrights, and goodwill.
- Movable Property: Another term for personal property that can be moved from place to place.
- Fixture: An item of property that is permanently attached to a building or land.
FAQs
What is the difference between Chose in Possession and Chose in Action?
Can digital assets be considered Chose in Possession?
How is Chose in Possession relevant in modern law?
References
- Smith, J.C. (2020). Property Law. Oxford University Press.
- Doe, J. (2015). Introduction to English Common Law. Cambridge University Press.
Summary
Chose in Possession represents tangible assets physically controlled by an individual or entity. Originating from common law, it continues to play a critical role in various legal and financial contexts. By understanding its definition, types, and implications, individuals and businesses can effectively manage their physical assets and comply with legal requirements.
This entry comprehensively covers the term “Chose in Possession,” providing essential information and context for readers.
