Civil Procedure

Cession

The transfer of a personal right (such as a debt owed to you) from one person (cedent) to another (cessionary) without requiring the debtor's consent.

Legal Definition

Cession is the act by which a creditor (cedent) transfers their right to receive a debt or benefit to another person (cessionary). The debtor must be notified but need not consent. After a valid cession, the cessionary steps into the shoes of the cedent and can enforce the right directly against the debtor. Cession is widely used in debt collection (assignment of debt books) and factoring (selling invoices to a financier).

📖 Constitutional / Statutory Basis: Section 25 (property rights include personal rights)

Practical Example

A supplier sells outstanding invoices worth R500,000 to a debt collection company (cession). The debt collector then has the right to collect directly from the supplier's customers.

Frequently Asked Questions

Can a debt be ceded without telling the debtor in South Africa?

A cession is valid without the debtor's consent, but the debtor must be notified. Until notified, the debtor can validly pay the original creditor. After notification, payment must be made to the cessionary.

Can you cede a right to future salary in South Africa?

Section 90 of the NCA prohibits cessions of future remuneration to credit providers. Any agreement purporting to cede future earnings to a credit provider is void.

Related Terms

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