law
law
COMMERCIAL LAW 1A TRANSFER & TERMINATION OF PERSONAL RIGHTS 2 • Personal rights can be terminated in various ways AND they can be transferred from one person to another e.g. cession • What is a personal right? • Termination vs transfer? • Important to understand the difference between debtor and creditor. • Debtor is the person who needs to perform/owes an obligation. • Creditor is the person to whom the obligation is owed. INTRODUCTION 3 • The transfer of RIGHTS from 1 person to another A) Cedent B) Cessionary C) Debtor • THE PERSON WHO TRANSFERS THE PERSONAL RIGHT IS CALLED THE ‘CEDENT’. (CT) • THE PERSON TO WHOM THE RIGHT IS TRANSFERRED IS CALLED THE ‘CESSIONARY’ (CY) • CEDENT CEDES HIS/HER RIGHT/CLAIM TO THE CESSIONARY • AGREEMENT OF CESSION/CESSION AGREEMENT • PERSONAL RIGHT IS TRANSFERRED TO ANOTHER CREDITOR • CESSION DOES NOT TERMINATE OR CREATE A NEW OBLIGATION – DEBTOR MUST PERFORM TO ANOTHER CREDITOR CESSION D CT CY 4 • Parties can agree that cession may be prohibited in term