The assignee is ... Features of concluding the contract of assignment of the right of claim

The contract of assignment of the right of claim is called a cession. This agreement takes a special place among other transactions. Let's consider in detail such concepts as the assignor and the assignee: who it is, what legal opportunities and obligations.

General information

Usually the assignment of rights of demand involves the payment of certain compensation by the receiving party. Actually, the transaction involves three subjects:

• A person having certain obligations by virtue of the original contract. This participant is called a debtor.
• The entity before which obligations arose. He is a creditor.
• A person who, in fact, is inferior to the right of claim.

Assignor and assignee: who is this?

Subjects that have certain obligations are called debtors. This term has a somewhat narrow meaning. Nevertheless, in accordance with existing practice, it can mean not only monetary obligations, but also debts of a different kind. For example, it may be a duty to perform work / provide a service, transfer ownership and so on. The entity acting as a creditor is referred to in the assignment as the assignor. This person transfers to a third party the ability to claim payment of arrears. The latter is referred to in the transaction as the assignee. He gets the opportunity to demand payment of debts in his favor.

Assignee

An individual, as a result of concluding a transaction to transfer the legal possibility to demand the repayment of the debt, assumes the entire scope of powers that were with the original creditor. The latter at the same time leaves the contract. The assignee is a participant in the transaction who, in accordance with the agreement with the original creditor, is given the opportunity not only to demand payment of the debt, but also to apply sanctions to the person evading this.

The specificity of the transfer of authority

The conclusion of the contract does not imply obtaining the obligatory consent of the borrower. However, the law stipulates the need to notify the debtor of the transaction. The notification is necessary in order for the transferee to receive payments exactly from the assignee. This will avoid probable problems for both sides of the contract. If the debtor does not know about the change of the creditor, he can continue to repay the obligations in favor of the original lender. As a result, he is in arrears.

Credentials of the new creditor

The rights of the assignee when concluding a transaction have the same amount and the same limits as the original lender. For example, the agreement provided for the possibility to repay obligations by transfer of property. The lender, therefore, can turn it in his favor. The assignee has the same opportunity. This will not depend on whether the notice of the transaction to the debtor has been sent. Payment (repayment of the obligation) can be carried out in any form (cash / in-kind). But in all cases it is necessary to determine the powers that the new creditor has.

Debt repayment

In practice, payments are rarely made in cash. Usually, the repayment of obligations is made by crediting to the account that the assignee has. This can also be done by issuing promissory notes, checks, other negotiable documents. In accordance with the principle of autonomy of the participant's will, the parties to the contract of assignment may decide differently the question concerning the rights of the assignee to the money amounts and property received pursuant to the initial agreement.

An Important Moment

As was said above, the right of the assignee is maintained, regardless of whether the debtor was notified of concluding the contract of assignment. This approach is universally recognized and operates in virtually all legal systems. Its application is conditioned by the need to provide withholding from payment, if it was made prior to notification of the debtor. If the money has been transferred to the assignor after the borrower has been informed, the assignee is entitled to these payments, since the debt under the new agreement has not been paid off.

Conclusion

According to the current legislation, different types of rights can be transferred . The exception is only those that are directly related to the identity of the original creditor. To obligations of this kind, for example, include alimony payments, compensation for damage to health. That is, the right to demand these payments can not be transferred. The initial creditor in concluding the contract of assignment is obliged to provide a third party with guarantees. In particular, it must confirm its rights to property, value, service or other object to be transferred. The original creditor, thus, provides documents proving the belonging of the subject. They must confirm the legitimacy of the right at the time of the cession.