Assignment of choses in action
Choses in action are ‘…all personal rights of property which can only be claimed or enforced by action and not by taking physical possession.’ (ref Torkington v Magee). The term includes the benefits arising under a contract and, subject to certain qualifications, rights of action arising by reason of a breach of contract.
A chose in action can be a legal chose, for example an interim payment due under a building contract, or an equitable chose such as a legacy under a will or an interest in a partnership.
Choses in action can be assigned or transferred unilaterally, for example A the employer enters into a construction contract with B the contractor, requiring B to construct a building to a quality set out in the specification. A can, without the consent of, or indeed knowledge of B, transfer the benefit of that contract to a third party C. A is known as the assignor, B the debtor and C the assignee. Only the benefits of a contract can be assigned, not the burdens (see Nokes v Doncaster Amalgamated Collieries). The burden must be novated.
It is important to understand that the right to assign a chose in action is not derived from contract. It is a statutory right, alternatively a right arising from the rules of equity. Express conditions are commonly found in collateral warranties purporting to grant rights of assignment; these conditions are unnecessary and may actually have the effect of restricting the rights to assign.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Compressor market trends for the EMEA region
Report includes sales vs production of compressors by type.
Government announces latest plans for growth.
Changes to product testing under the Building Safety Bill
Will the new requirements - once passed - go far enough?
HORSA huts - prefab school structures
These post-WWII modular buildings were unpopular, yet ubiquitous.
A bridge between Scotland and Northern Ireland
What's the verdict from the court of public opinion?
Open plan living falls out of fashion
Shift to home-based work influences closed plan preferences.
The UK heating industry and the Brexit transition
An overview of the current state of the market.
UEFA guide to renovating football training facilities
Organisation offers best practices for construction and modification.
Heritage on the edge?
Prioritising tax considerations.
Reviewing the Double Diamond Design model
The four D creative process: discover, define, develop and deliver.
National Cyber Security Centre initiative is announced.
The impact of COVID-19 on global HVAC&R markets
Reviewing trends and projections.
Legislation will establish initiatives to move towards net zero.
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.