Anyone can carry any Item (except for extra Big items; see Big Items), but you may equip only one Headgear, one suit of Armor, one pair of Footgear, and two “1 Hand" Items (or one “2 Hands" Item), unless you have a card that lets you ignore these limits, such as Hireling or Cheat!, or unless one of the cards says otherwise.
If you are carrying two Headgear cards, for instance, you can equip only one of them at a time.
Likewise, some Items have restrictions: for instance, the Mace of Sharpness can only be wielded by a Cleric. Its bonus only counts for someone who is, at the moment, a Cleric.