chose in action

A chose in action is an intangible property right or property which is legally not in a person's possession, but is only enforceable by legal process: that is by court order. Choses in action comprise all personal rights of property which cannot be taken by possession of a physical object (ie a chose in possession). They are incorporeal rights. Assets this sort may be legal and enforceable in a court exercising its common law jurisdiction, such as a debt, intellectual property right (for instance, copyright, a patent, or trade mark), or an equitable chose such as a share in a trust fund, share of proceeds of sale in the hands of a mortgagee.

For a chose in action to exist, there must be a remedy at common law or equity which recognises the chose. So, if a remedy does not exist for the alleged chose in action, the chose in action cannot exist. Legal choses in action may be assigned in equity, at common law or by statute, and equitable choses can be assigned in equity or by statute. For an assignment of a legal chose in action to be effective by statute, it must be in writing, be absolute (the whole of the chose, unconditional and not a security interest), with notice to the debtor. In the event that an assignment is ineffective by statute (for instance, an assignment of part of a debt), it still may be effective in equity.

Usage: Intellectual property rights are choses in action.

Related Words: property; lien; shares; ownership; asset; in rem; in personam; chose in possession.