Cessionary Agreement

In Retmil Financial Services (Pty) Ltd v Sanlam Life Insurance Company Ltd u. a. [2013] 3 All SA 337 (WCC) decided by the Western Cape High Court (ÖRK) that an assignment agent (a right assigned to guarantees) as a secured security interest creditor was a paterfamilias bonus (an ordinary prudent person; Whoever takes appropriate steps to protect, inter alia, (b. his or her assets) with respect to the assigned right, has a duty to exercise due diligence with respect to the assigned right and to protect the assignor`s interests in the law. The WCC has decided that, if it has not fulfilled these obligations, the assignee may be entitled to damages against the assignee, depending on the circumstances. The WCC also noted that the question of whether the assignor could recover the debtor`s principal debt if the assignor was not in default of the secured debt because it insured the secured asset was a real and non-legal issue to be addressed by reference to the terms of the commitment agreement. 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). If the assignor is in arrears with the secured debt, for example by failing to return the loan, the assignor has the right, at that time, but not before, to exploit its guarantee by exercising its power of recourse to collect the principal debt and use the proceeds to pay the secured debt. As noted above, whether the assignor may do so prior to the late payment of the secured debt is a factual issue to be determined by the terms of the receivables contract. At the end of the performance of the assignment contract, the receivable is definitively transferred to the recipient of the assignment.

From that date, the assignment may not be revoked unilaterally either by the assignor or by the assignee. . . .

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