Choses in Action Act

Consolidated act

Citation: R.S.N.W.T. 1988, c.C-7
Source: Unofficial consolidation PDF (justice.gov.nt.ca) consolidation downloaded Jun 6, 2026

This is an unofficial reading copy parsed from the Department of Justice consolidation PDF above — itself an office consolidation, not an official statement of the law. The authoritative text is in the Revised Statutes of the Northwest Territories, 1988 and the annual Statutes volumes.

Contents

1. Definition of "assignee" 2. Action for debt on assignment 3. Equities of debtor against assignor before notice 4. Assignee’s rights after 5. Securities transferable by delivery 6. Negotiable instruments

Definition of "assignee"

(1) In this section, "assignee" includes a person who is entitled, by any first or subsequent assignment or transfer or any derivative title, to a debt or chose in action and possesses at the time when the action is instituted the right to receive the subject or proceeds of the subject and to give effectual discharge for the subject or the proceeds of the subject.

Assignment

(2) Every debt and every chose in action arising out of contract is assignable at law by any form of writing containing apt words in that behalf but subject to such conditions and restrictions with respect to the right of transfer as may appertain to the original debt or as may be connected with or be contained in the original contract.

Assignee

(3) The assignee of a debt or chose in action arising out of contract may

(a) bring an action on the debt or chose in action in the assignee’s own name as the party might to whom the debt was originally owing or to whom the right of action originally accrued; or

(b) proceed in respect of the debt or chose in action as though this Act had not been passed.

Action for debt on assignment

The plaintiff in an action for the recovery of the subject of an assignment made in conformity with section 1 must, in the statement of claim, set out briefly the chain of assignments showing how the plaintiff claims title, but in all other respects the proceedings may be the same as if the action were brought in the name of the original creditor or of the person to whom the cause of action accrued.

Equities of debtor against assignor before notice

An assignment of a debt or chose in action arising out of contract and not assignable by delivery is subject to any defence or set-off in respect of the whole or any part of the debt or chose in action existing at the time of the notice of assignment to the debtor or person sought to be made liable, in the same manner and to the same extent as such defence or set-off would be effectual in case there had been no assignment of the debt or chose in action, and such defence or set-off applies as between the debtor and any assignee of the debt or chose in action.

Assignee’s rights after

Where

(a) an assignment is made in conformity with this Act, and

(b) notice of the assignment is given to the debtor or person liable in respect of the subject of the assignment,

the assignee is entitled to have, hold and enjoy the subject of the assignment free of any claims, defences or equities that may arise after the notice by any act of the assignor or otherwise.

Securities transferable by delivery

The bonds or debentures of corporations made payable to bearer or any person named in the bonds or debentures may be transferred by delivery alone and such transfer vests the property in the bonds or debentures in the transferee or in the holder of the bonds or debentures and any such holder may bring any action on or in respect of the bonds or debentures in the holder’s own name.

Negotiable instruments

This Act shall not be construed to apply to bills of exchange or promissory notes or instruments that are negotiable or in respect of which the property in them passes by mere delivery.