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Assignment of Credits and other Incorporeal Rights

Arts. 1624-1635

Assignment of Credit
Contract by which one person transfers to another his rights and actions against a third person in consideration of a price certain in money or its equivalent To affect third persons, it must appear in a public instrument Consent of the debtor is not essential, notice is sufficient. Purpose of notice: to inform the debtor that from the date of the assignment he should make payment to the assignee and not to the original creditor

Extent of assignment of credit


1. 2. 3. 4. All accessory rights including: Guaranty Mortgage Pledge Preference

Warranties of the assignor or credit


1. Existence of the credit 2. Legality of the credit at the perfection of the contract No warranty as to the solvency of the debtor

Violation of warranty
Vendor in good faith: Limited to the price received and to the expenses of the contract Vendor in bad faith: Liable not only for the payment of the price and all expenses but also for damages

Duration of assignors liability where


debtors solvency is guaranteed
1. If there is a stipulation, then for the period fixed 2. If there is no stipulation a. 1 year from the assignment of credit b. 1 year after its maturity when such period of payment has not yet expired

Sale of successional rights


What is sold is the right to inherit only No warranty as to the objects which make up his inheritance

Sale for a lump sum


Subject matter: totality of such rights, rents, or products Warranty extends only to the legitimacy of the whole and not the various parts

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