Preview · page 1Businesses selling debts, lenders taking security, and people transferring claims
Cession Agreement
Transfer the right to collect a debt, or hand over rights as security for a loan, in writing.
Quick answer
A cession agreement is a written agreement used by businesses selling debts, lenders taking security, and people transferring claims in South Africa. This template covers rights ceded, clearly identified, outright cession or cession in security, price / consideration, warranties that the rights exist and are not already ceded and more, drafted with POPIA, the CPA and the ECT Act in mind.
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What's inside
- 01Rights ceded, clearly identified
- 02Outright cession or cession in security
- 03Price / consideration
- 04Warranties that the rights exist and are not already ceded
- 05Notice to the debtor
- 06Delivery of documents
- 07POPIA clause
Good to know
What is a cession in South African law?+
A cession transfers a personal right, such as the right to be paid a debt, from the cedent to the cessionary. The debtor then pays the cessionary.
Does the debtor have to agree to a cession?+
Usually not, unless the original contract forbids it, but the debtor must be told so they pay the right person.
What is a cession agreement?+
A cession agreement transfers a right, usually the right to collect a debt, from one person (the cedent) to another (the cessionary).
What is a cession in security?+
A cession in security hands over rights as security for a loan; they return to the cedent once the loan is repaid.
Does a cession need to be in writing?+
Not always by law, but it should be, so the debtor and any court can see exactly which rights were transferred.
Is this legal advice?+
No. It's a professionally structured starting point. For high-value or unusual deals, have an attorney review your completed document.
