Chose in action

Chose in action meaning

A Chose in action is a thing of which a person has not the present enjoyment, but merely a right to recover it (if withheld) by action. Money held in a bank account is a chose in action. As an example of a ‘chose in action’, can be shares in a company or other intangible items of property such as a debt, the title to which can be asserted only by taking legal action in the courts. These require special formality in order to be transferred.  The settlor must execute a share transfer form and lodge it, with the share certificates, with the company, which will then register the trustees as legal owners of the shares in accordance with the requirements laid down by the articles of association of the company.

Types of Choses in action

Choses in action can include things like intellectual property rights, such as patents or copyrights, or contractual rights, such as the right to receive payment for services rendered. These rights are considered legally enforceable and can be transferred or assigned to other individuals or entities. The law regarding choses in action is complex and varies depending on the specific type of right in question.

Disadvantages of Choses in action

While this legal concept has its benefits, it also brings with it several disadvantages. Firstly, it can be costly to pursue a chose in action through the legal system, especially if the defendant decides to defend the claim. Additionally, a chose in action can be subject to statutory limitations which could mean the claimant loses their right to bring an action if they do not act within a certain time frame. Furthermore, the outcome of a chose in action can sometimes be unpredictable, leaving both parties uncertain of what the final decision will be. Overall, while a chose in action can be a useful legal tool, it has important disadvantages that must be taken into account by anyone considering taking legal action.

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