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] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
It was the tallest structure in the world for 3,800 years, but to this day the exact construction techniques are a mystery.
Shortlist for the industry's most coveted award announced.
Government responds to Mark Farmer's review of industry, rejecting the call for a levy on clients.
Peter Hansford to examine what wider lessons can be learned from the fire.
Every project is subject to uncertainty. How can construction better understand uncertainty for performance improvement?
MAD Architects reveal their designs for a futuristic campus for electric car manufacturer.
Homebuyers could borrow more with better forecasting of energy bills, according to industry consortium's new report.
Read our introductory article on carbon capture and storage.
Have a look at Frank Gehry's Binoculars Building in Los Angeles.
BRE publish new Loss Prevention Standard seeking to minimise fire risk from ducting.
Beneficial infrastructure projects
How do we tell which infrastructure projects will work?
CIAT announce the establishment of a Working Group in light of Grenfell and call for contributions.
In 1900, 15% of global population lived in cities. Now it’s over 50%. Which is why we need ‘hydroinformatics’ to consume smarter.
Have a look at these competition-winning designs for a new residential development in Eindhoven.
Grenfell Tower articles updated daily
Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.