Chose in Action (Fr. chose, 'a thing') is one of the two great classes of what the English law calls chattels personal. The one class is 'choises in possession,' such as goods, household furniture, cattle, &c.; the other class is 'choises in action,' such as the right to sue for a debt, a legacy, damages, &c. The old common-law rule was that, except in the case of negotiable instruments, contracts could not be assigned so that the assignee might sue in his own name; but the assignee must bring his action in the name of the assignor or cedent, so that the assignee was always exposed to every defence which might have been stated against the original debtor under the contract. This resulted from the primitive view of contract as creating a strictly personal relation between the debtor and creditor. The Equity Courts, however, permitted the assignment of debts and equitable rights, notice being given to the debtor to preserve priority; and in particular cases—e.g. policies of insurance under a statute of 1867, the full right of assignment was permitted. Now, under the Judicature Act, 1873, every legal chose in action is absolutely assignable if express notice in writing be given to the debtor; and although the words of the statute do not extend to assignment by way of security, or to any assignment of what is called an equitable chose in action, there is now little practical distinction between the two.
In the United States that quality of a chose in action rendering it unassignable at common law is fast disappearing. In some states a chose in action may not only be assigned, but the assignee may bring a suit for possession in his own name; while in others the name of the assignor is used as plaintiff in the action, to the use of the assignee. Courts of law generally follow the rules of equity in this respect.