What are the valid conditions for the assignment of creditor s rights?

Mondo Finance Updated on 2024-02-01

According to Article 545 of the Civil Code of the People's Republic of China, a creditor may transfer all or part of the creditor's rights to a third party, except in any of the following circumstances:

1) It cannot be assigned according to the nature of the obligatory right;

2) It shall not be transferred in accordance with the agreement of the parties;

3) It cannot be transferred in accordance with the provisions of law.

Where the parties agree that non-monetary claims may not be assigned, they must not be used against a bona fide third party. Where the parties agree that monetary claims may not be assigned, they must not be used against a third party.

Article 546:Where a creditor assigns creditor's rights without notifying the debtor, the assignment shall not take effect against the debtor. The notice of assignment of claims may not be revoked, except with the consent of the assignee.

The transfer of creditor's rights by a creditor shall comply with the corresponding statutory requirements.

The details are as follows: First, the creditor's claim is legal and valid. This is the basic premise for the assignment of creditor's rights. The legality and validity of the claim includes both the legality of the content of the claim and the legality of the form of the claim, and at the same time, it also implies a condition that the claim belongs to the assignor, or the assignor has the authority to dispose of the claim. If the creditor transfers the creditor's rights of another person, it will constitute a disposition without authority.

Second, a legal and effective agreement on the assignment of creditor's rights is reached between the assignor and the assignee.

Third, the assignment of creditor's rights shall comply with the procedures specially provided for by law.

Fourth, the debtor must be notified of the assignment of creditor's rights.

With regard to the application of this article, attention should be paid to the specific content of the relevant notification requirements:

First, on the subject of the notice. Notification to the debtor when the creditor assigns the creditor's rights is a necessary condition for the assignment of the creditor's rights to be legally effective against the debtor. From the perspective of facilitating the development of transactions, the assignee of the claim can be allowed to become the subject of the notification.

Second, about the object of notification. The creditor shall give notice to the debtor or the person authorized by the debtor. If the creditor gives notice of the assignment to another person, the notice of the assignment is not effective against the debtor, even if the debtor has known about it.

Third, about the time of notification. Notification of the assignment of creditor's rights shall be made within a reasonable period of time. As for the judgment of a reasonable period, it can be determined according to the rules of daily life experience.

Fourth, on the form of notification. This provision does not specify the form in which notification of the assignment of claims should take, which means that the notification may be in oral or written form. However, if the parties object to the subsequent notification, the party performing the notification obligation shall bear the burden of proof as to whether the notification has been made.

*: Legal Service Platform "What Are the Effective Conditions for the Transfer of Creditor's Rights?".》

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