Cession in Mercantile Law
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Questions and Answers

What is a key distinction between a ceded contract and the original contract?

  • The ceded contract is no longer with the original creditor (correct)
  • The ceded contract is stricter than the original contract
  • The debtor's consent is required for the ceded contract
  • The debtor's obligations are increased in the ceded contract

    • What is the purpose of the cessionary giving notice to the debtor?

  • To inform the debtor of the cession (correct)
  • To transfer the debtor's obligations
  • To formalize the cession process
  • To prescribe the formalities of the cession

    • What is the limitation of a cession?

  • The cession is only valid if the debtor is aware of it
  • The debtor's consent is required for the cession
  • The cession is only a transfer of rights, not obligations (correct)
  • The creditor can transfer more rights than they have

    • What happens if the debtor performs in good faith to the original creditor?

    <p>The performance is valid and extinguishes the debt</p> Signup and view all the answers

    What is a defence that the debtor can raise against the cessionary's claim?

    <p>All of the above</p> Signup and view all the answers

    Why may formalities be prescribed in certain cases?

    <p>To comply with statutory requirements</p> Signup and view all the answers

    What is the definition of cession in the context of mercantile law?

    <p>A transfer of claim/personal right by one person to another</p> Signup and view all the answers

    What is the role of the cedent in a cession?

    <p>The person who transfers the right</p> Signup and view all the answers

    What is a possible ground for prohibiting cession?

    <p>By statute, contract, or common law</p> Signup and view all the answers

    What is the exception to the rule that a prohibition on cession in a contract is invalid?

    <p>When it can be shown that there is an interest in the prohibition</p> Signup and view all the answers

    What happens when a right is ceded to a third party?

    <p>The third party becomes the new creditor</p> Signup and view all the answers

    What is a characteristic of cession?

    <p>It does not change the nature of the obligation</p> Signup and view all the answers

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