12 Questions
What is a key distinction between a ceded contract and the original contract?
The ceded contract is no longer with the original creditor
What is the purpose of the cessionary giving notice to the debtor?
To inform the debtor of the cession
What is the limitation of a cession?
The cession is only a transfer of rights, not obligations
What happens if the debtor performs in good faith to the original creditor?
The performance is valid and extinguishes the debt
What is a defence that the debtor can raise against the cessionary's claim?
All of the above
Why may formalities be prescribed in certain cases?
To comply with statutory requirements
What is the definition of cession in the context of mercantile law?
A transfer of claim/personal right by one person to another
What is the role of the cedent in a cession?
The person who transfers the right
What is a possible ground for prohibiting cession?
By statute, contract, or common law
What is the exception to the rule that a prohibition on cession in a contract is invalid?
When it can be shown that there is an interest in the prohibition
What happens when a right is ceded to a third party?
The third party becomes the new creditor
What is a characteristic of cession?
It does not change the nature of the obligation
Learn about the principles of cession, the transfer of personal rights, and how it applies to contract law. Understand the roles of the creditor, debtor, and third party in a cession transaction.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
