A common clause in an agreement, is one that stipulates that one party’s rights in terms of the agreement may not be ceded without the prior consent of the other party.
A cession is the transfer of a personal right from one person to another. A common example of a cession is the transfer of a claim against a debtor for payment from one creditor to another.
1. As personal rights are intangible, the method of transfer and delivery of this right is by way of a cession agreement.
2. The parties to the cession agreement are:
3. If the underlying agreement which gives rise to the rights being ceded requires the original other contracting party’s prior consent to the cession, then the Cedent will need to obtain this first.
4. The validity of a cession depends not only on the cession agreement but also on the underlying claim being ceded.
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