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    LU 6 - Transfer and Termination of Rights and Obligations

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    Unathi Ntuli
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    LU 6 - Transfer and Termination of Rights and Obligations

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    Unathi Ntuli
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    slides

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views20 pages

    LU 6 - Transfer and Termination of Rights and Obligations

    Uploaded by

    Unathi Ntuli
    slides

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 20

    LAW OF

    CONTRACT

    1
    You may use the power point slides
    as a guideline to prepare content for
    tests, assessments and the
    examination

    HOWEVER, THE CONTENT TO THE


    POWER POINT SLIDES IS
    INSUFFICIENT TO SUCSESSFULLY
    COMPLETE THIS MODULE

    It is your responsibility to build onto


    slides from the prescribed textbook,
    audios, additional study material,
    legislation and court cases.

    No demarcations will be provided for


    any test, assessment or examination,
    unless a brief has been provided with
    authority to share with students
    2
    • ICE tasks
    ➢ Check VC Learn

    • Assignment
    ➢ Check PAS for DUE DATE

    • Test
    ➢ Check PAS for DUE DATE

    3
    What to expect next?

    Learning Unit 6: Cession and Transfer of Rights


    Chapters 14 & 15

    4
    5
    Class discussion.
    George wants to apply for a personal
    loan of R300 000 from XYZ Bank.

    XYZ Bank considers George as a risk


    and request him to provide security.

    George signs a contract where he


    surrenders his OM Policy to the bank as
    security.

    Five months later, George stops paying


    the PNL installments to XYZ Bank.

    XYZ Bank approach you for legal advise.


    6
    Reciprocal contract
    George XYZ Duties?
    Duties? Bank

    Rights? Rights?

    Personal claim? Personal claim?

    7
    What is cession? Transfer
    agreement OR act
    of transfer

    RIGHTS
    JURISTIC ACT
    Incorporeal
    personal right

    Why?

    8
    Background to Law of property

    Kinds of property

    Corporeal Incorporeal
    ▪ Incorporeal rights are
    • Classification of thing, touch, smell, property rights that cannot be seen
    or touched but are still legally
    taste enforceable
    • Example: house, car ▪ Examples: Copyrights,
    licences, rights-of-way, servitudes,
    mortgages, lease

    9
    Background to Law of property

    Objective PHYSICAL
    Subjective MENTAL
    element
    element Transfer of
    Conveyance : delivery
    (real agreement)
    Intention to transfer and
    (traditio) for movables ownership
    and registration for
    receive ownership
    immovables

    10
    CONSTRUCTIV
    Movables
    E DELIVERY
    Attornment

    Constitutum Symbolic
    possessorium delivery

    Delivery with Delivery with


    short hand long hand

    11
    → Transfer of an incorporeal → Cessionary steps into the shoes of
    personal right the Cedent as the new CR of B
    (DR)
    → Effected by agreements
    → Obligationary proprietary
    → There is no physical delivery consequences
    → Creates a duty to transfer a → Substitution of CR’s, affects the
    right obligations between the parties
    → Cedent transfers a personal → Transfer of an asset of the estate
    right that she has against a of the cedent to the estate of the
    DR to the cessionary ( 3rdP). cessionary
    12
    Who is the cedant?
    The juristic person who transfers their personal right to a debt to a third
    party (cessionary)?

    Who is the cessionary?

    A juristic person to whom a right has been transferred. 13


    Requirements of a valid Cession:
    ▪ Entitlement by the cedent to dispose of the
    personal right -Rule: NEMO PLUS IURIS (you
    cannot transfer more than you have!

    ▪ Cedent must be the holder of a personal


    right/authorized by the holder to transfer the right
    than she has applies to transfer of all rights,
    including personal right.

    ▪ Capacity of the personal right to be ceded -


    General rule –personal rights are freely cedable
    but there are exceptions.

    ▪ A transfer agreement -concurrence of intentions,


    concluded tacitly/expressly

    ▪ Formalities

    ▪ Legality

    ▪ Absence of prejudice to the DR 14


    Consequences of Cession
    1. Cedent is divested of the right

    2. Right vests in the cessionary

    3. Cessionary is a substitute Creditor

    4. Performance by the Debtor must be made to the cessionary

    15
    16
    Any questions?

    17
    Chapter 15
    Termination
    of
    obligations

    18
    Termination of obligations

    Various ways in which obligations can be


    extinguished:

    By operation of By unilateral act Breach of


    By performance By agreement of aggrieved
    law contract – that
    (TB pages 412 – (TB pages 414 – party in case of
    (TB pages 419 – allows for
    414) 419) voidable
    428) cancellation
    contracts

    19
    Any questions
    20

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