equitable conversion

Equitable conversion is a reference to the changing nature of property. For instance, seeds grow into trees and cease to be seeds, materials are combined to make larger products such as pharmaceuticals, cement, alloys, and other mixtures which cannot be undone; the property cannot go back and assume its original form.
The law of equity recognises two forms of conversion:

1. actual conversion: selling property to convert it to money, or using money (which is the property) into real property or a chose in possession or chose in action; and
2. constructive or equitable conversion: when actual conversion has been agreed but not carried out.