List of summaries, consolidations and regulations
The Choses in Action Act
The Choses in Action Act provides that every debt and every chose in action arising out of a contract is assignable, subject to the original terms of the contract. The Act gives the assignee or the transferee of the debt or chose in action the same rights to a court action as the original claimant of the debt or chose in action.
While not defined in the Act, the phrase "chose in action" means all personal rights to property which can only be claimed or enforced by an action and not by taking physical possession of the property. It is a right to recover something not in one's possession.
A debtor is entitled to any set-off or defence existing at the time he or she received the notice of assignment in the same manner as if there had been no assignment. However, this right is good against the assignee only when the debt or chose in action arises out of a contract and not an assignment by delivery.
Corporate bonds or debentures made "payable to bearer" may be transferred by delivery alone.
The Act does not apply to bills of exchange, promissory notes, negotiable instruments, or instruments in respect of which the property referred to passes by mere delivery.