FahadKhan

Cession Agreement Precedent

Can an assignment of accounting debts within the meaning of Article 136(2)(a) be suspended? The assignor of such assignment is not required to notify the assignor`s debtors. The person responsible for the assignment holds this assignment only as collateral, the extinguished accounting debts being constantly replaced by new ones. In Grobbelaar/Oosthuizen 2009 (5) SA 500 (SCA), the General Court held that, in the event of a full assignment, the assignor lost all his rights by assigning those rights to an assignor and that he was no longer entitled to the assignor after the assignment (see paragraph 8). This decision was supported by the judgment in Kritzinger and Another v Standard Bank of South Africa (3034/2013) [2013] ZAFFHS 215 (19 September 2013) (Kritzinger case). Why do I need a contract assignment? The reasons for the assignment and assignment of an agreement are multiple and may include restructuring an organization, transferring a business, or buying debt. This assignment agreement provides for the assignment of rights and the transfer of obligations from one person to another. In an earlier case, FirstRand Bank Ltd (Bank) obtained a judgment against Brayton Carlswald (Pty) Ltd (Brayton) and Jonathan Paul Brews (JP Brews) (joint defendant) for payment of a sum of money. He added Brayton`s property to execute against the sentence. Gordan Donald Brews (DG Brews) came to the rescue, who agreed to lend money to the defendants, whose proceeds would pay their debts to the bank. As security for the loan, the defendants (i) agreed to obtain an assignment of shares in a company; (ii) register a pawnshop on associated immovable property; and (iii) that the Bank`s judgment would be transferred to DG Brews.

The bank also agreed to assign its judgment debt to GD Brews in exchange for payment of the judgment debt, plus an additional amount by DG Brews. As a result of further complications, DG Brews paid the bank and, some time later, the bank transferred its judgment debts and additional rights to GD Brews. Believing that it had acquired the judgment debt by assignment as security for its loan, GD Brews applied to South Gauteng High Court for an order that it be replaced as an enforceable creditor. A beneficiary of a trust who is Brayton`s sole shareholder requested the opportunity to intervene in GD Brews` application on the grounds that it and its subsidiaries would suffer a direct financial loss and lose their livelihoods. The General Court rejected the application to replace DG Brews as an executing creditor. He appealed to the Assembly, which was accepted. Brayton and the other complainant, Martina Brews, then appealed the Assembly`s judgment. An often overlooked principle is that the assignment is akzesso or in nature. Their validity depends not only on compliance with the common law, but also on the existence of a principal obligation in force. In the event of a breach of security, the assignment guarantees payment of the secured debt. These principles stem from an Appeal Division decision (as it was then) rendered in Kilburn in 1931 against Kilburn and may even have existed before.

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