COMMERCIAL LAW CLA1501
(Chapter 12: Transfer and Termination of Personal Rights)
Personal rights can be terminated in various ways but transferred in 1 way = cession
Person transferring rights =
cedent
Person receiving = cessionary
Cession ≠ termination of obligation nor does it create new obligation.
e.g. debtor owes x $ but x owes y same amount x cedes to y Debtor owes y now. Think of
debtors being handed over from creditors to debt collector lawyers.
CESSION IN GENERAL:
DEBTOR
3. Performance
Debt obligation after
(performance obligation before
session)
session
CREDITOR
(Cedent) 2. Session takes SESSIONARY
place
Cedent cedes the right to receive payment from the
debtor to the cessionary
WHEN CAN YOU NOT CEDE?
Cession is generally done freely, but can be prohibited by agreement or law:
Law (statute) can prohibit cession:
e.g. can’t cede pension fund or maintenance (divorce situation).
Can not cede a right that is intimately connected with the person of the creditor that if exercised by someone
else will encumber the debtor with a different material obligation.
e.g. Hire the services of a portrait painter.
i.e. a debtor’s position may not be prejudiced by cession. a right can only be ceded in its entirety.
AGREEMENT
PROHIBITION
OF CESSION
BY:
Statute
LAW
Claim intimately connected
with person of creditor
Page 1 of 4
(Chapter 12: Transfer and Termination of Personal Rights)
Personal rights can be terminated in various ways but transferred in 1 way = cession
Person transferring rights =
cedent
Person receiving = cessionary
Cession ≠ termination of obligation nor does it create new obligation.
e.g. debtor owes x $ but x owes y same amount x cedes to y Debtor owes y now. Think of
debtors being handed over from creditors to debt collector lawyers.
CESSION IN GENERAL:
DEBTOR
3. Performance
Debt obligation after
(performance obligation before
session)
session
CREDITOR
(Cedent) 2. Session takes SESSIONARY
place
Cedent cedes the right to receive payment from the
debtor to the cessionary
WHEN CAN YOU NOT CEDE?
Cession is generally done freely, but can be prohibited by agreement or law:
Law (statute) can prohibit cession:
e.g. can’t cede pension fund or maintenance (divorce situation).
Can not cede a right that is intimately connected with the person of the creditor that if exercised by someone
else will encumber the debtor with a different material obligation.
e.g. Hire the services of a portrait painter.
i.e. a debtor’s position may not be prejudiced by cession. a right can only be ceded in its entirety.
AGREEMENT
PROHIBITION
OF CESSION
BY:
Statute
LAW
Claim intimately connected
with person of creditor
Page 1 of 4
